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.