CarGurus (CARG)

Working capital 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
Total current assets	US$ in thousands	391,191	535,369	535,292	543,214	557,366	603,846	629,514	572,719	563,108	441,509	388,776	311,776	331,976	281,422	216,081	210,239	218,954	206,182	188,841	179,406
Total current liabilities	US$ in thousands	115,178	108,638	110,764	123,999	98,733	148,881	175,973	148,907	170,709	102,450	103,547	81,725	66,536	55,867	43,147	58,331	73,758	72,378	70,392	65,474
Working capital turnover		3.32	2.30	2.80	3.48	3.61	3.75	3.32	2.86	2.42	2.25	2.41	2.46	2.08	2.47	3.24	4.03	4.06	4.17	4.44	4.31

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $917,072K ÷ ($391,191K – $115,178K)
= 3.32

CarGurus Inc's working capital turnover has fluctuated over the past eight quarters, ranging from a low of 2.29 in Q3 2023 to a high of 3.75 in Q3 2022. The working capital turnover indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio suggests that the company is effectively using its current assets to support its operations and generate sales.

In Q4 2023, the working capital turnover was 3.31, indicating that for every dollar of working capital, the company generated $3.31 in sales. This represents a slight increase from the previous quarter, suggesting improved efficiency in utilizing working capital. However, compared to the same quarter the previous year (Q4 2022), the working capital turnover has decreased.

Overall, CarGurus Inc's working capital turnover has shown some variability in recent quarters, but it remains relatively stable at levels above 2.5, indicating efficient utilization of working capital to support the company's sales activities. Monitoring this ratio closely can provide insights into the company's liquidity management and operational efficiency.