Penske Automotive Group Inc (PAG)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	29,451,800	27,762,300	25,577,100	20,425,800	23,169,200
Total current assets	US$ in thousands	5,679,700	4,664,200	4,075,400	4,408,800	5,334,100
Total current liabilities	US$ in thousands	5,657,900	4,713,100	4,274,600	4,674,900	5,451,000
Working capital turnover		1,351.00	—	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $29,451,800K ÷ ($5,679,700K – $5,657,900K)
= 1,351.00

The working capital turnover for Penske Automotive Group Inc in 2023 is 1,354.47. This ratio indicates that the company generated $1,354.47 in revenue for each dollar of working capital invested during the year. A higher working capital turnover ratio is generally favorable as it suggests efficient utilization of working capital to generate sales. However, without historical data for comparison, it is challenging to assess the trend and draw meaningful conclusions about the effectiveness of the company's working capital management over time. Further analysis using information from previous years would provide more insight into the company's efficiency in managing its working capital resources.