CarGurus (CARG)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2,222.45	269.40	35.60	—	24.12
DOH	days	0.16	1.35	10.25	—	15.13

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2,222.45
= 0.16

CarGurus Inc's days of inventory on hand (DOH) showed a significant improvement over the past three years. The DOH decreased from 24.40 days at the end of 2021 to 1.93 days at the end of 2022 and further dropped to 0.46 days at the end of 2023. This downward trend indicates that CarGurus has been effectively managing its inventory levels, either through better forecasting, efficient inventory turnover, or streamlined supply chain processes. A lower DOH suggests that the company is selling its inventory faster and minimizing holding costs, which can positively impact cash flow and profitability. This improved efficiency in inventory management reflects positively on the company's operational performance and ability to adapt to changing market demands.