Penske Automotive Group Inc (PAG)

Number of days of payables

		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
Payables turnover		32.34	30.05	28.78	28.83	30.70	30.75	29.75	28.23	31.39	29.31	27.78	29.36	29.06	26.63	27.29	33.70	30.86	28.75	29.82	28.72
Number of days of payables	days	11.29	12.15	12.68	12.66	11.89	11.87	12.27	12.93	11.63	12.45	13.14	12.43	12.56	13.71	13.38	10.83	11.83	12.69	12.24	12.71

December 31, 2023 calculation

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

Penske Automotive Group Inc's number of days of payables has been relatively stable over the past eight quarters. The company takes around 13 to 15 days, on average, to pay its suppliers for goods and services purchased on credit. The gradual fluctuations in this ratio indicate the company's consistent approach to managing its payables. It is important to note that a lower number of days of payables suggests that the company is paying its suppliers more quickly, potentially indicating good relationships and negotiating power with vendors. Conversely, a higher number of days of payables could imply that the company is using supplier financing to manage its cash flow. Overall, a detailed analysis of the company's working capital management strategies and supplier relationships would provide further insights into the implications of its number of days of payables.