Penske Automotive Group Inc (PAG)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	26.42	30.45	32.20	30.58	30.66	32.60	34.48	32.06	34.85	33.96	26.86	24.60	25.31	24.21	27.12	36.70	24.13	23.50	23.74	21.86
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
Working capital turnover	1,351.00	989.66	1,601.94	453.83	—	—	—	—	—	—	—	—	—	85.23	—	135.61	—	—	—	—

Penske Automotive Group Inc's activity ratios show the efficiency with which the company manages its assets and liabilities.

- Inventory turnover has been relatively stable, ranging from 5.73 to 7.16 over the past eight quarters. This indicates that the company is able to sell and replace its inventory multiple times during the year, with a slight decline in the most recent quarter.

- Receivables turnover has also been consistent, fluctuating between 26.49 and 34.45. This ratio indicates the speed at which the company collects outstanding receivables from customers, with higher ratios suggesting better efficiency.

- Payables turnover has remained within a narrow range of 24.74 to 28.37, demonstrating the company's ability to effectively manage its payables and settle its obligations to suppliers in a timely manner.

- Working capital turnover has shown significant variability, ranging from 454.49 to 1,605.59. In the most recent quarter, an exceptionally high working capital turnover of 1,354.47 was observed, suggesting efficient utilization of working capital to generate revenue.

Overall, Penske Automotive Group Inc's activity ratios reflect a generally efficient management of its inventory, receivables, payables, and working capital, indicating effective utilization of resources and productive operational performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	55.89	48.74	52.17	49.83	48.89	45.11	44.56	45.38	47.44	40.00	46.05	59.01	63.72	61.34	67.45	78.28	78.89	76.36	76.27	78.02
Days of sales outstanding (DSO)	days	13.81	11.99	11.34	11.94	11.91	11.20	10.59	11.38	10.47	10.75	13.59	14.84	14.42	15.08	13.46	9.94	15.13	15.53	15.38	16.70
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

The activity ratios of Penske Automotive Group Inc show the efficiency of the company in managing its inventory, collecting receivables, and paying off its payables.

Days of Inventory on Hand (DOH) have been gradually increasing over the past quarters, indicating that inventory is being held for a longer period before being sold. This may suggest potential issues in managing inventory levels efficiently and could tie up capital in unsold inventory.

Days of Sales Outstanding (DSO) have also been increasing, indicating a lengthening of the average time it takes for the company to collect payments from customers. This trend may signal potential challenges in credit management and collecting receivables promptly, impacting cash flow.

The Number of Days of Payables shows a slight fluctuation over the quarters, but the trend seems relatively stable. A higher number of days of payables may suggest that the company is taking longer to pay its suppliers, potentially indicating advantageous credit terms with suppliers or potential liquidity constraints.

Overall, the trends in these activity ratios suggest areas where Penske Automotive Group Inc may need to focus on improving efficiency, particularly in managing inventory levels, collecting receivables, and optimizing payment terms to suppliers. It is essential for the company to strike a balance between these factors to ensure optimal working capital management and sustain long-term financial health.

Long-term

	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
Fixed asset turnover	10.65	10.97	10.93	10.96	11.13	11.22	11.11	11.09	10.47	10.53	10.18	8.93	8.50	8.78	8.95	9.84	9.79	9.84	9.71	9.93
Total asset turnover	1.88	1.97	1.94	1.95	1.97	1.99	1.98	1.96	1.90	1.97	1.84	1.60	1.54	1.58	1.59	1.64	1.66	1.66	1.68	1.67

Long-term activity ratios provide insight into how effectively a company is using its assets to generate sales. In the case of Penske Automotive Group Inc, the fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 10.68 to 11.22. This indicates that the company is generating around $11 in sales for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has also been fairly consistent, fluctuating between 1.88 and 1.99. This ratio suggests that Penske Automotive Group Inc is generating approximately $1.90 in sales for every dollar of total assets it owns.

Overall, both the fixed asset turnover and total asset turnover ratios indicate that Penske Automotive Group Inc is efficiently utilizing its assets to generate revenue. With a high fixed asset turnover ratio, the company is effectively using its property, plant, and equipment to drive sales, while the total asset turnover ratio implies that the company is efficiently managing its entire asset base to generate revenue.