CarGurus (CARG)

Number of days of payables

		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
Payables turnover		15.37	20.08	24.44	28.83	43.74	21.87	16.95	15.40	10.58	9.51	9.88	10.08	17.17	16.79	31.00	12.59	9.68	8.23	5.95	3.51
Number of days of payables	days	23.74	18.18	14.94	12.66	8.34	16.69	21.53	23.71	34.50	38.37	36.94	36.21	21.25	21.73	11.77	28.99	37.72	44.36	61.37	103.86

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 exhibited fluctuating trends over the past eight quarters. In Q4 2023, the company took an average of 66.47 days to pay its suppliers, representing a significant increase compared to the previous quarter's 38.28 days. This longer period may indicate a potential strain on the company's liquidity or a deliberate strategy to optimize cash flow.

Comparing Q4 2023 to the same quarter in the previous year, there has been a substantial increase from 11.90 days to 66.47 days, suggesting a notable shift in payment practices that may impact relationships with suppliers.

Analyzing the trend further, Q2 2023 showed a notable increase from Q1 2023, followed by a decline in Q3 2023 before the significant spike in Q4 2023. These fluctuations may indicate variations in working capital management or changes in procurement strategies within CarGurus Inc.

It is essential for stakeholders to monitor these changes in the number of days of payables to assess the company's financial health, operational efficiency, and relationship with suppliers. Additionally, understanding the reasons behind these fluctuations can provide insights into CarGurus Inc's overall business strategy and financial performance.