Penske Automotive Group Inc (PAG)

Cash conversion cycle

		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
Cash conversion cycle	days	58.42	48.58	50.82	49.11	48.90	44.44	42.88	43.84	46.28	38.30	46.50	61.42	65.57	62.71	67.53	77.40	82.19	79.20	79.40	82.01

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.89 + 13.81 – 11.29
= 58.42

The cash conversion cycle of Penske Automotive Group Inc has exhibited fluctuations over the past eight quarters. In Q4 2023, it stood at 64.63 days, marking an increase compared to the previous quarter. This suggests that the company took longer to convert its invested resources into cash in the latest quarter. Throughout the quarters, the company has experienced variations in the efficiency of its working capital management, as seen in the changes in the duration of its cash conversion cycle. The trend has shown a mix of increases and decreases, indicating fluctuations in the company's ability to manage its cash, receivables, and inventory effectively. Overall, further analysis of the underlying factors contributing to these fluctuations would be necessary to assess the effectiveness of Penske Automotive Group Inc's cash flow management strategies.