Penske Automotive Group Inc (PAG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.50 | 5.22 | 5.33 | 5.60 | 5.74 | 6.58 | 6.14 | 6.42 | 6.55 | 7.07 | 7.16 | 7.05 | 6.75 | 8.05 | 7.01 | 5.46 | 5.04 | 5.41 | 5.09 | 4.51 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | 1,354.47 | 992.11 | 1,605.59 | 454.49 | — | — | — | — | — | — | — | — | — | 85.15 | — | 135.57 |
Penske Automotive Group Inc's inventory turnover has shown a generally increasing trend over the last few years, indicating that the company is selling its inventory more efficiently. It went from 4.51 in March 31, 2020, to 5.50 in December 31, 2024, with some fluctuations in between.
The receivables turnover and payables turnover ratios were not provided, which limits our ability to assess the efficiency of the company in collecting receivables and managing payables.
The working capital turnover ratio experienced fluctuations but showed a significant increase in some periods, indicating that the company is generating more revenue relative to its working capital. For example, it was 454.49 in March 31, 2023, and 1,354.47 in December 31, 2023, suggesting improved efficiency in utilizing working capital during those periods.
Overall, while the inventory turnover and working capital turnover ratios show positive signs of operational efficiency and improved performance in managing inventory and working capital, a lack of information on receivables and payables turnover limits a full assessment of Penske Automotive Group Inc's activity ratios.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 66.37 | 69.90 | 68.54 | 65.15 | 63.62 | 55.49 | 59.41 | 56.82 | 55.75 | 51.59 | 51.01 | 51.77 | 54.09 | 45.36 | 52.05 | 66.88 | 72.44 | 67.48 | 71.69 | 80.90 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Penske Automotive Group Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The DOH represents the number of days a company takes to sell its entire inventory. A lower DOH indicates better efficiency.
- The DOH has shown a decreasing trend over the years, from 80.90 days on March 31, 2020, to 66.37 days on December 31, 2024.
- The decreasing trend in DOH suggests that Penske Automotive Group has become more efficient in managing its inventory over the years.
2. Days of Sales Outstanding (DSO):
- Unfortunately, the data provided does not include information on DSO, which is used to measure how long it takes for a company to collect its accounts receivable. Without this data, we cannot analyze the efficiency of Penske Automotive Group in collecting receivables.
3. Number of Days of Payables:
- Similarly, the data does not include information on the number of days of payables, which is used to measure how long a company takes to pay its suppliers and creditors.
- Without this data, we are unable to assess how quickly Penske Automotive Group pays its payables, which is crucial for evaluating its liquidity and working capital management.
In summary, based on the data provided, Penske Automotive Group Inc has shown improvement in managing its inventory efficiently over the years, as indicated by the decreasing trend in Days of Inventory on Hand. However, without data on Days of Sales Outstanding and Number of Days of Payables, a comprehensive analysis of the company's overall activity ratios is limited.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 5.81 | 5.73 | 10.98 | 11.14 | 11.22 | 5.51 | 11.08 | 5.22 | 5.23 | 5.06 | 8.94 | 8.50 | 8.77 | 8.94 | 9.84 |
| Total asset turnover | 1.82 | 1.76 | 1.80 | 1.84 | 1.80 | 1.98 | 1.94 | 1.96 | 1.97 | 1.99 | 1.98 | 1.96 | 1.90 | 1.97 | 1.84 | 1.60 | 1.54 | 1.58 | 1.59 | 1.64 |
The Fixed Asset Turnover ratio measures how effectively Penske Automotive Group Inc is generating revenue from its fixed assets. Over the observed period, the ratio fluctuated significantly, starting at 9.84 in March 2020, gradually declining until June 2021, then peaking at 11.22 in September 2022 before stabilizing around the 5 to 6 range. This indicates that the company was initially very efficient in utilizing its fixed assets to generate sales, but efficiency decreased and then fluctuated later on.
Total Asset Turnover, on the other hand, assesses Penske Automotive's ability to utilize all assets to generate revenue. The ratio started at 1.64 in March 2020, decreased slightly, then showed a notable increase from June 2021 to September 2022, fluctuating afterward around 1.96 to 1.80. This suggests that while the company experienced some fluctuations, it generally maintained a steady performance in generating revenue from its total assets.
In conclusion, Penske Automotive Group Inc has shown varying efficiency in generating sales from its fixed assets over the analysis period, with a more consistent performance in utilizing total assets to generate revenue. Further scrutiny into the company's fixed asset management may be warranted to improve long-term efficiency and profitability.