CarGurus (CARG)

Days of inventory on hand (DOH)

		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
Inventory turnover		2,222.42	2,330.36	1,773.39	752.06	269.40	52.14	57.99	45.38	35.60	82.32	—	—	—	16.14	15.27	12.92	17.56	20.94	15.01	7.28
DOH	days	0.16	0.16	0.21	0.49	1.35	7.00	6.29	8.04	10.25	4.43	—	—	—	22.62	23.90	28.25	20.79	17.43	24.32	50.15

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2,222.42
= 0.16

CarGurus Inc has shown a significant improvement in its Days of Inventory on Hand (DOH) metric over the past quarters. In Q4 2023, the company reported a DOH of 0.46 days, decreasing from 0.72 days in Q1 2023 and a substantial reduction from 14.77 days in Q1 2022. This indicates that the company is managing its inventory more efficiently and rapidly converting it into sales.

The trend of decreasing DOH is evident across the quarters, with Q3 2022 and Q4 2022 showing notably higher DOH figures of 10.21 days and 1.93 days, respectively. The most recent quarters, Q2 and Q3 2023, also continued the trend of lower DOH, further reflecting the company's effective inventory management strategies.

Overall, the decreasing trend in CarGurus Inc's DOH suggests that the company is likely improving its inventory turnover rate, resulting in reduced costs associated with holding excess inventory and potentially higher profitability from faster sales cycles.