CarGurus (CARG)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 735,630 | 1,422,950 | 699,810 | 368,969 | 488,395 |
| Inventory | US$ in thousands | 331 | 5,282 | 19,656 | -100,000 | 20,246 |
| Inventory turnover | 2,222.45 | 269.40 | 35.60 | — | 24.12 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $735,630K ÷ $331K
= 2,222.45
CarGurus Inc's inventory turnover has shown a significant increase over the past five years, exhibiting a trend of efficient management of its inventory. The inventory turnover ratio has improved from 14.96 in 2021 to 188.85 in 2022 and further surged to 793.92 in 2023. This substantial increase highlights the company's ability to sell its inventory quickly, indicating effective inventory management and potentially strong consumer demand for its products. The sharp rise in inventory turnover from 2021 to 2023 suggests that CarGurus Inc has been successful in optimizing its inventory levels and sales processes, resulting in a shorter cash-to-cash cycle and improved liquidity. The consistent improvement in inventory turnover over the years reflects positively on the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023