Penske Automotive Group Inc (PAG)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		32.34	30.70	31.39	29.06	30.86
Number of days of payables	days	11.29	11.89	11.63	12.56	11.83

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 32.34
= 11.29

The number of days of payables for Penske Automotive Group Inc has displayed fluctuations over the past five years. As of December 31, 2023, the company's number of days of payables stood at 12.87 days, showing a slight decrease compared to the previous year. This metric indicates that, on average, Penske Automotive takes approximately 12.87 days to pay its trade payables.

Comparing the trend over the five-year period, there was a slight increase in 2022, followed by relatively stable figures in 2021 and 2020. However, in 2019, the number of days of payables was lower at 11.82 days, suggesting a faster payment cycle that year.

Overall, the number of days of payables metric provides insights into Penske Automotive's efficiency in managing its accounts payable. The fluctuations observed over the years may reflect changes in the company's payment policies, supplier relationships, or operational efficiency. Further analysis and comparison with industry benchmarks could provide a better understanding of the company's financial management practices.