Penske Automotive Group Inc (PAG)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	28,034,900	27,710,200	27,155,800	26,589,800	26,199,700	25,463,600	25,026,400	25,093,400	24,076,800	23,708,300	23,277,400	20,274,600	19,623,900	19,099,300	18,538,800	19,875,000	19,713,700	19,330,000	19,038,100	19,200,600
Inventory	US$ in thousands	4,293,100	3,700,200	3,881,300	3,630,400	3,509,100	3,146,900	3,055,200	3,120,000	3,129,000	2,598,400	2,936,900	3,277,800	3,425,600	3,209,700	3,425,900	4,262,700	4,260,700	4,043,900	3,978,000	4,104,100
Inventory turnover		6.53	7.49	7.00	7.32	7.47	8.09	8.19	8.04	7.69	9.12	7.93	6.19	5.73	5.95	5.41	4.66	4.63	4.78	4.79	4.68

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $28,034,900K ÷ $4,293,100K
= 6.53

The inventory turnover ratio of Penske Automotive Group Inc has shown some fluctuations over the past eight quarters. The company's inventory turnover ratio for Q4 2023 was 5.73, which indicates that the company sold and replaced its inventory approximately 5.73 times during that quarter. This represents a decrease from the previous quarter, Q3 2023, when the ratio was 6.58.

Overall, the trend in inventory turnover for Penske Automotive Group Inc has been relatively stable, ranging from a low of 5.73 in Q4 2023 to a high of 7.16 in Q3 2022 over the past eight quarters. A higher inventory turnover ratio typically indicates that the company is efficiently managing its inventory by quickly selling off its products and restocking with new inventory.

It is important to further investigate the reasons behind the fluctuations in the inventory turnover ratio to determine if they are due to changes in sales trends, inventory management practices, or other factors affecting the company's operations and profitability.