CarGurus (CARG)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	917,072	980,534	1,187,569	1,459,061	1,657,093	1,707,547	1,504,008	1,210,527	951,422	763,580	688,137	565,126	551,498	558,153	561,143	611,437	589,749	557,686	526,266	491,560
Receivables	US$ in thousands	39,963	46,107	37,820	42,395	46,817	120,059	193,431	144,718	189,324	85,182	81,863	36,364	18,235	16,322	16,844	17,536	22,124	17,892	17,081	15,111
Receivables turnover		22.95	21.27	31.40	34.42	35.40	14.22	7.78	8.36	5.03	8.96	8.41	15.54	30.24	34.20	33.31	34.87	26.66	31.17	30.81	32.53

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $917,072K ÷ $39,963K
= 22.95

CarGurus Inc's receivables turnover has displayed fluctuating trends over the past eight quarters. The receivables turnover ratio measures the efficiency with which the company is able to collect outstanding receivables from its customers. A higher turnover ratio signifies that the company is collecting its receivables more quickly.

In Q4 2023, the receivables turnover ratio stood at 22.88, demonstrating an increase compared to the previous quarter. This indicates that CarGurus Inc was able to collect its receivables more efficiently in Q4 2023.

The quarterly data reveals that there have been significant variations in the receivables turnover ratio over the past two years. The company experienced a sharp increase in Q1 2023 with a ratio of 34.35, representing efficient collection of receivables at that time. Conversely, there were periods of lower turnover ratios such as in Q2 and Q3 2022, indicating a longer collection period for outstanding receivables during those quarters.

It is important for CarGurus Inc to closely monitor its receivables turnover ratio as it can impact the company's cash flow and liquidity position. Overall, the company should aim to maintain a healthy balance between efficient collection of receivables and maintaining good relationships with its customers.