Penske Automotive Group Inc (PAG)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 66.57 | 63.72 | 55.75 | 54.09 | 72.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 66.57 | 63.72 | 55.75 | 54.09 | 72.44 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 66.57 + — – —
= 66.57
The cash conversion cycle of Penske Automotive Group Inc has shown some variability over the past five years. As of December 31, 2020, the company's cash conversion cycle was 72.44 days. Over the following years, the cycle has decreased, reaching its lowest point at 54.09 days as of December 31, 2021. However, the cycle increased slightly in the subsequent years, with figures of 55.75 days as of December 31, 2022, 63.72 days as of December 31, 2023, and 66.57 days as of December 31, 2024.
Overall, the trend indicates that Penske Automotive Group Inc has been managing its cash conversion cycle more efficiently in recent years, as evidenced by the general decrease from 2020 to 2021. However, the slight increase in the later years suggests a potential need for the company to focus on optimizing its working capital management to enhance operational efficiency and maintain a healthy cash conversion cycle.
Peer comparison
Dec 31, 2024