Penske Automotive Group (Penske Automotive Group) Cash Conversion Cycle : 59.53 (As of Dec. 2023)

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What is Penske Automotive Group Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Penske Automotive Group's Days Sales Outstanding for the three months ended in Dec. 2023 was 13.01.
Penske Automotive Group's Days Inventory for the three months ended in Dec. 2023 was 59.94.
Penske Automotive Group's Days Payable for the three months ended in Dec. 2023 was 13.42.
Therefore, Penske Automotive Group's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 59.53.

Penske Automotive Group Cash Conversion Cycle Historical Data

The historical data trend for Penske Automotive Group's Cash Conversion Cycle 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.

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Penske Automotive Group Cash Conversion Cycle Chart

Penske Automotive Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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80.24

83.15

55.19

50.63

57.62

Penske Automotive Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Cash Conversion Cycle	Get a 7-Day Free Trial															50.25	51.57	52.64	53.21	59.53

Competitive Comparison of Penske Automotive Group's Cash Conversion Cycle

For the Auto & Truck Dealerships subindustry, Penske Automotive Group's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Penske Automotive Group's Cash Conversion Cycle Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Penske Automotive Group's Cash Conversion Cycle falls into.

Penske Automotive Group Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Penske Automotive Group's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	12.49	+	57.9	-	12.77
	=	57.62

Penske Automotive Group's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	13.01	+	59.94	-	13.42
	=	59.53

Penske Automotive Group (NYSE:PAG) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.

Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.

Penske Automotive Group Cash Conversion Cycle Related Terms

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Penske Automotive Group (Penske Automotive Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Penske Automotive Group Inc (NYSE:PAG) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

UA9:Germany

Address

2555 Telegraph Road, Bloomfield Hills, MI, USA, 48302-0954

Website

https://www.penskeautomotive.com

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.

Executives

Sandra E. Pierce	director	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Kurnick Robert H Jr	director, officer: President	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
John Barr	director	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
Michelle Hulgrave	officer: EVP & CFO	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Shane M. Spradlin	officer: EVP, Gen. Counsel & Sec.	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Kimberly J Mcwaters	director	20410 NORTH 19TH AVENUE, PHOENIX AZ 85027
Lisa Ann Davis	director	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Greg C Smith	director	FORD MOTOR COMPANY, 21175 OAKWOOD BLVD, DEARBORN MI 48124
Denker Claude H Iii	officer: EVP - Human Resources	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Roger S Penske	director, 10 percent owner, officer: Chair & CEO	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
H Brian Thompson	director	1950 OLD GALLOWS ROAD SUITE 201, VIENNA VA 22182
Ronald G Steinhart	director	3890 WEST NORTHWEST HIGHWAY SUITE 400, DALLAS TX 75220
Michael R Eisenson	director	C/O CHARLESBANK CAPITAL PARTNERS, 600 ATLANTIC AV 28TH FL, BOSTON MA 02210
Gregory W Penske	director	3534 NORTH PECK ROAD, EL MONTE CA 91731
Wolfgang Duerheimer	director	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302