CarGurus (CARG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 474.75 | 539.14 | 418.99 | 586.78 | 793.92 | 1,106.51 | 1,068.30 | 504.42 | 188.85 | 35.77 | 36.51 | 24.71 | 14.96 | 22.81 | — | — | — | 2.39 | 1.96 | 1.38 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.00 | 4.11 | 5.33 | 4.57 | 3.31 | 2.29 | 2.79 | 3.47 | 3.61 | 3.75 | 3.32 | 2.86 | 2.42 | 2.25 | 2.41 | 2.46 | 2.08 | 2.47 | 3.24 | 4.02 |
CarGurus' activity ratios provide insights into the efficiency of the company in managing its assets and operations.
1. Inventory Turnover:
- The inventory turnover ratio has been fluctuating over the years, indicating changes in how quickly CarGurus sells its inventory.
- The ratio increased significantly from September 2021 to March 2023, showing improved inventory management and faster sales.
- A sudden spike in inventory turnover from December 2022 to March 2023 suggests a rapid depletion of inventory, possibly due to increased demand or efficient inventory control.
2. Receivables Turnover:
- The data does not provide information on receivables turnover, indicating a lack of accounts receivable management analysis for CarGurus.
3. Payables Turnover:
- Similar to receivables turnover, the lack of data prevents an analysis of payables turnover, limiting insights into CarGurus' management of trade payables.
4. Working Capital Turnover:
- The working capital turnover ratio reflects CarGurus' ability to generate revenue relative to its working capital.
- The ratio has shown fluctuations over the periods, with peaks in March 2024 and June 2024, indicating increased revenue generation efficiency per unit of working capital.
- The ratio decreased in September 2023, which could imply a temporary inefficiency in utilizing working capital to generate revenue.
Overall, while CarGurus demonstrates strong inventory turnover and working capital efficiency, further analysis of receivables and payables turnover ratios could provide a more comprehensive understanding of the company's overall activity management.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 0.77 | 0.68 | 0.87 | 0.62 | 0.46 | 0.33 | 0.34 | 0.72 | 1.93 | 10.21 | 10.00 | 14.77 | 24.40 | 16.00 | — | — | — | 152.99 | 186.62 | 264.14 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, CarGurus' Days of Inventory on Hand (DOH) has shown a significant improvement over the years, decreasing from 264.14 days as of March 31, 2020, to just 0.77 days as of December 31, 2024. This indicates that the company has become more efficient in managing its inventory levels.
On the other hand, the Days of Sales Outstanding (DSO) and Number of Days of Payables have not been provided, suggesting that this information may not be publicly available or relevant for CarGurus.
Overall, based on the trend in Days of Inventory on Hand, it can be inferred that CarGurus has successfully managed its inventory turnover, leading to improved working capital management and potentially better financial performance.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 4.10 | 24.56 | 34.07 | 41.24 | 46.36 | 42.56 | 36.57 | 29.54 | 25.82 | 6.97 | 18.95 | 20.07 | 20.46 | 6.03 | 6.33 |
| Total asset turnover | 1.08 | 1.14 | 1.16 | 1.03 | 0.99 | 0.93 | 1.14 | 1.38 | 1.79 | 1.74 | 1.49 | 1.28 | 1.02 | 0.93 | 0.88 | 0.79 | 1.10 | 1.21 | 1.38 | 1.50 |
Based on the provided data, CarGurus' long-term activity ratios can be analyzed as follows:
1. Fixed Asset Turnover:
- CarGurus' fixed asset turnover ratio has shown significant fluctuations over the years. The ratio started increasing from around 6 in March 2020 to a peak of 46.36 in September 2022 but then decreased to 4.10 in September 2023.
- The sudden decrease in fixed asset turnover from 46.36 to 4.10 within a year indicates inefficiencies in utilizing fixed assets to generate sales. This could be a red flag as it suggests a potential decrease in operational efficiency or underutilization of fixed assets.
- Further monitoring of the fixed asset turnover ratio is crucial to identify the reasons behind such fluctuations and to implement corrective measures to improve efficiency in utilizing fixed assets.
2. Total Asset Turnover:
- CarGurus' total asset turnover ratio has also exhibited fluctuations, but the overall trend shows an increase from 1.50 in March 2020 to 1.08 in December 2024.
- The ratio peaked at 1.79 in December 2022, indicating that CarGurus generated $1.79 in sales for every $1 of total assets. However, the ratio decreased to 1.08 by December 2024, signaling a potential decline in asset efficiency in generating sales.
- Monitoring the total asset turnover ratio is essential to assess the company's ability to utilize its assets effectively to drive sales and revenue. Further analysis is needed to understand the factors contributing to the fluctuations in this ratio and to implement strategies for improving asset turnover efficiency.