Penske Automotive Group Inc (PAG)

Payables 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
Payables	US$ in thousands	866,900	922,100	943,500	922,200	853,500	828,000	841,100	889,000	767,100	808,800	838,000	690,500	675,400	717,200	679,400	589,800	638,800	672,300	638,500	668,500
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

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $28,034,900K ÷ $866,900K
= 32.34

Penske Automotive Group Inc's payables turnover has been relatively stable over the past eight quarters, ranging from 24.74 to 28.37. The payables turnover ratio measures how efficiently the company manages its accounts payable, indicating how many times a company pays off its average accounts payable balance during a period.

The average payables turnover for Penske Automotive Group Inc stands at approximately 26.37 over these eight quarters, suggesting that, on average, the company pays off its accounts payable balance around 26 times per year.

A higher payables turnover ratio generally indicates that a company is managing its payables efficiently, paying its suppliers in a timely manner, and potentially taking advantage of any early payment discounts available. Conversely, a lower ratio could imply that the company is taking longer to pay its suppliers, which could indicate liquidity issues or strained relationships with suppliers.

Overall, Penske Automotive Group Inc's payables turnover ratio shows consistent and efficient management of its accounts payable, which could be seen as a positive sign for the company's financial health and vendor relationships.