CarGurus (CARG)

Days of sales outstanding (DSO)

		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
Receivables turnover		22.95	21.27	31.40	34.42	35.40	14.22	7.78	8.36	5.03	8.96	8.41	15.54	30.24	34.20	33.31	34.87	26.66	31.17	30.81	32.53
DSO	days	15.91	17.16	11.62	10.61	10.31	25.66	46.94	43.64	72.63	40.72	43.42	23.49	12.07	10.67	10.96	10.47	13.69	11.71	11.85	11.22

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 22.95
= 15.91

To analyze CarGurus Inc's Days Sales Outstanding (DSO) over the past eight quarters, we observe fluctuations in the collection efficiency of the company. DSO measures the average number of days it takes for a company to collect payment after a sale has been made.

In Q1 2022, the DSO was 43.63 days, indicating a prolonged collection period. However, there was a significant improvement in Q2 2022, with DSO decreasing to 46.94 days. This trend reversed in Q3 2022, as the DSO increased substantially to 25.66 days.

Progress continued in Q4 2022, with a notable decrease in DSO to 10.32 days. This positive trend carried into Q1 2023, with DSO further declining to 10.63 days. The efficiency in collections improved significantly in Q2 2023, reaching 11.65 days, but saw a slight increase in Q3 2023 to 17.21 days.

Finally, in Q4 2023, the DSO decreased to 15.95 days. Overall, the company has shown variability in its collection efficiency over the past eight quarters. Analyzing these trends can provide insights into the company's management of accounts receivable and cash flow.