CarGurus (CARG)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	894,384	888,969	877,030	898,075	914,242	977,863	1,184,898	1,456,390	1,655,035	1,707,633	1,504,094	1,210,613	951,373	763,584	688,141	565,130	551,451	558,051	561,041	611,335
Total current assets	US$ in thousands	391,206	326,637	276,712	312,710	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
Total current liabilities	US$ in thousands	93,051	110,588	112,041	116,319	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
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $894,384K ÷ ($391,206K – $93,051K)
= 3.00

CarGurus' working capital turnover ratio has fluctuated over the specified time period. The ratio measures how efficiently the company is using its working capital to generate revenue.

From March 31, 2020, to June 30, 2022, the working capital turnover ratio showed a declining trend, indicating a decrease in efficiency in utilizing its working capital to generate revenues.

However, from September 30, 2022, to June 30, 2024, the ratio saw an increasing trend, suggesting an improvement in the company's efficiency in generating revenue relative to its working capital.

The highest working capital turnover ratio was observed on June 30, 2024, at 5.33, indicating that CarGurus generated $5.33 of revenue for every dollar of working capital during that period.

Overall, fluctuations in the working capital turnover ratio can reflect changes in the company's operational efficiency, liquidity management, and overall financial performance.