CarGurus (CARG)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 894,384 | 914,242 | 1,655,040 | 951,373 | 551,451 |
| Property, plant and equipment | US$ in thousands | — | — | 40,128 | 32,210 | 27,483 |
| Fixed asset turnover | — | — | 41.24 | 29.54 | 20.07 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $894,384K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Looking at the trend for CarGurus over the years from 2020 to 2023, we observe a significant increase in the fixed asset turnover ratio.
In December 2020, the fixed asset turnover ratio was 20.07, indicating that for every dollar invested in fixed assets, the company generated $20.07 in revenue. This ratio improved to 29.54 by December 2021, showing an increase in asset efficiency. The trend continued to improve, with the ratio reaching 41.24 by December 2022, signaling that the company was generating $41.24 in revenue for every dollar invested in fixed assets.
However, the data is incomplete for December 2023 and December 2024, marked as "—". It is essential to note that a high fixed asset turnover ratio can indicate efficient asset utilization but may also suggest that the company is not investing enough in fixed assets to support its operations.
Overall, the increasing trend in CarGurus' fixed asset turnover ratio from 2020 to 2022 reflects improved efficiency in utilizing fixed assets to generate revenue.
Peer comparison
Dec 31, 2024