CarGurus (CARG)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 894,384 | 914,242 | 1,655,040 | 951,373 | 551,451 |
| Total assets | US$ in thousands | 824,536 | 918,927 | 927,102 | 931,574 | 502,298 |
| Total asset turnover | 1.08 | 0.99 | 1.79 | 1.02 | 1.10 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $894,384K ÷ $824,536K
= 1.08
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. In the case of CarGurus, we observe fluctuations in its total asset turnover over the five-year period from 2020 to 2024.
In 2020, CarGurus had a total asset turnover of 1.10, indicating that the company generated $1.10 in sales for every dollar of total assets it had during that year. The ratio decreased to 1.02 in 2021, suggesting a slight decline in efficiency in utilizing its assets to generate revenue.
However, there was a significant improvement in 2022, with the total asset turnover ratio spiking to 1.79. This sharp increase indicates that CarGurus became more efficient in generating sales relative to its total asset base.
Yet, in 2023, the total asset turnover dropped to 0.99, falling below the level observed in 2020. This decline could be a sign of decreased asset utilization efficiency or changes in the business operations impacting revenue generation.
By 2024, the total asset turnover ratio recovered slightly to 1.08, still below the peak achieved in 2022. Overall, CarGurus experienced fluctuations in total asset turnover over the years, with varying levels of efficiency in generating sales revenue from its total asset base.
Peer comparison
Dec 31, 2024