What is Penske Automotive Group Accounts Receivable?
Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Penske Automotive Group's accounts receivables for the quarter that ended in Dec. 2023 was $1,115 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
Penske Automotive Group's Days Sales Outstanding for the quarter that ended in Dec. 2023 was 13.99.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Penske Automotive Group's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was $-117.21.
Penske Automotive Group Accounts Receivable Historical Data
The historical data trend for Penske Automotive Group's Accounts Receivable can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Penske Automotive Group Accounts Receivable Calculation
Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.
Penske Automotive Group Accounts Receivable Explanation
1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days Sales Outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.
Penske Automotive Group's Days Sales Outstanding for the quarter that ended in Dec. 2023 is calculated as:
2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), Penske Automotive Group's accounts receivable are only considered to be worth 75% of book value:
Penske Automotive Group's Net-Net Working Capital Per Share for the quarter that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.
If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.
Average Days Sales Outstanding is a good indicator for measuring a company's sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.
Penske Automotive Group Accounts Receivable Related Terms
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Penske Automotive Group (Penske Automotive Group) Business Description
Penske Automotive Group operates in about 20 U.S. states and overseas. It has about 150 U.S. light-vehicle stores including in Puerto Rico as well as 189 franchised dealerships overseas, primarily in the United Kingdom. The company is the second-largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm's Premier Truck Group owns 44 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 20 CarShop used-vehicle stores in the U.S. and U.K. The company is based in Michigan and was called United Auto Group before changing its name in 2007.
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