Penske Automotive Group Inc (PAG)

Receivables 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
Revenue (ttm)	US$ in thousands	29,451,800	29,195,100	28,674,800	28,137,700	27,795,800	27,098,900	26,694,800	26,777,500	25,577,100	25,052,000	24,527,000	21,190,400	20,425,800	20,532,600	20,522,100	22,620,300	23,169,200	22,727,100	22,418,100	22,602,600
Receivables	US$ in thousands	1,114,600	958,800	890,600	920,200	906,700	831,300	774,300	835,200	734,000	737,700	913,300	861,500	806,900	848,200	756,600	616,300	960,300	967,300	944,400	1,034,100
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $29,451,800K ÷ $1,114,600K
= 26.42

The receivables turnover ratio for Penske Automotive Group Inc has exhibited fluctuations over the past eight quarters. In Q4 2023, the receivables turnover stood at 26.49, marking a decrease from the previous quarter's figure of 30.52. This decrease suggests that the company took longer to collect its accounts receivable in the most recent quarter.

Looking at the trend over the past two years, we observe that the receivables turnover ratio has generally shown a slight decline from Q2 2022 to Q4 2023. Despite some fluctuations, the ratio has remained relatively stable, ranging between 26.49 and 34.45.

A lower receivables turnover ratio may indicate inefficiencies in the company's credit policies or difficulties in collecting outstanding receivables. Conversely, a higher ratio signifies that Penske Automotive Group Inc is more effective at collecting payments from its customers, which is generally considered favorable.

Overall, it is important for the company to monitor its receivables turnover ratio regularly to ensure optimal cash flow management and efficient accounts receivable collection processes.