CarGurus (CARG)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		15.37	43.74	10.58	17.11	13.30
Number of days of payables	days	23.74	8.34	34.50	21.33	27.45

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 15.37
= 23.74

CarGurus Inc's number of days of payables has fluctuated significantly over the past five years. In 2023, the company took approximately 66.47 days, on average, to pay its suppliers and creditors. This represents a substantial increase compared to the previous year, where the number of days of payables was notably lower at 11.90 days.

The significant increase in the number of days of payables from 2022 to 2023 may indicate that CarGurus Inc is taking longer to settle its payables, which could potentially strain relationships with suppliers or be a sign of financial difficulties.

Looking further back, in 2021, the company's number of days of payables was 82.12 days, indicating a longer payment period compared to 2023 but still lower than in 2020 and 2019. In 2020 and 2019, CarGurus Inc's number of days of payables was notably high at 184.29 days and 369.33 days, respectively, signifying an extended period before paying its obligations.

Overall, the trend in CarGurus Inc's number of days of payables shows variability over the years, with the company taking longer to pay its obligations in some years compared to others. This metric is crucial as it impacts the company's cash flow management and relationships with suppliers. It is important for stakeholders to monitor this ratio to understand the company's payment practices and financial health.