CarGurus (CARG)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 459.88 793.92 188.85 14.96
DOH days 0.79 0.46 1.93 24.40

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 459.88
= 0.79

Days of inventory on hand (DOH) is a measure of how many days, on average, a company holds its inventory before selling it. A lower DOH indicates that the company is managing its inventory efficiently and effectively.

For CarGurus, the trend in DOH over the years is as follows:
- December 31, 2020: Data not available.
- December 31, 2021: 24.40 days
- December 31, 2022: 1.93 days
- December 31, 2023: 0.46 days
- December 31, 2024: 0.79 days

The significant decrease in DOH from 24.40 days in 2021 to 0.79 days in 2024 indicates that CarGurus has been successful in reducing the amount of time it takes to sell its inventory. This suggests improved inventory management efficiency, potentially leading to lower holding costs and better liquidity.

Overall, the decreasing trend in DOH for CarGurus implies a positive development in inventory management, indicating a potential increase in operational efficiency and effectiveness in converting inventory into sales.