CarGurus (CARG)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		474.75	539.14	418.99	586.78	793.92	1,106.51	1,068.30	504.42	188.85	35.77	36.51	24.71	14.96	22.81	—	—	—	2.39	1.96	1.38
DOH	days	0.77	0.68	0.87	0.62	0.46	0.33	0.34	0.72	1.93	10.21	10.00	14.77	24.40	16.00	—	—	—	152.99	186.62	264.14

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 474.75
= 0.77

The Days of Inventory on Hand (DOH) for CarGurus has shown a declining trend over the period from March 31, 2020, to December 31, 2024.

Initially, in March 2020, CarGurus had 264.14 days of inventory on hand, indicating a high level of inventory relative to the sales. However, this number dropped consistently over the subsequent quarters, reaching 10.21 days by September 30, 2022.

From December 31, 2022, onwards, the DOH remained below 1 day, indicating that CarGurus was efficiently managing its inventory levels. The lowest DOH was recorded as 0.33 days on September 30, 2023.

This downward trend in DOH signifies that CarGurus improved its inventory management practices, resulting in a more efficient use of resources and potentially lower carrying costs. A low DOH number suggests that the company can quickly turn its inventory into sales, reflecting positively on its operational efficiency.