CarGurus (CARG)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 0.16 | 0.16 | 0.21 | 0.49 | 1.35 | 7.00 | 6.29 | 8.04 | 10.25 | 4.43 | — | — | — | 22.62 | 23.90 | 28.25 | 20.79 | 17.43 | 24.32 | 50.15 |
| Days of sales outstanding (DSO) | days | 15.91 | 17.16 | 11.62 | 10.61 | 10.31 | 25.66 | 46.94 | 43.64 | 72.63 | 40.72 | 43.42 | 23.49 | 12.07 | 10.67 | 10.96 | 10.47 | 13.69 | 11.71 | 11.85 | 11.22 |
| Number of days of payables | days | 23.74 | 18.18 | 14.94 | 12.66 | 8.34 | 16.69 | 21.53 | 23.71 | 34.50 | 38.37 | 36.94 | 36.21 | 21.25 | 21.73 | 11.77 | 28.99 | 37.72 | 44.36 | 61.37 | 103.86 |
| Cash conversion cycle | days | -7.67 | -0.86 | -3.11 | -1.57 | 3.32 | 15.98 | 31.71 | 27.97 | 48.38 | 6.78 | 6.48 | -12.73 | -9.18 | 11.56 | 23.08 | 9.73 | -3.23 | -15.22 | -25.21 | -42.49 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 0.16 + 15.91 – 23.74
= -7.67
The cash conversion cycle for CarGurus Inc has fluctuated over the past eight quarters. Starting from Q1 2022 with a positive value of 14.86 days, it gradually decreased to reach negative values in Q4 2022, signifying a more efficient conversion of cash resources into sales and back into cash. However, in Q1 2023, the company managed to significantly improve its cash conversion cycle, achieving a negative value of -7.53 days, indicating a further reduction in the time taken to convert investments in inventory and other resources into cash from sales.
In the most recent quarter, Q4 2023, CarGurus Inc continued to enhance its cash conversion cycle performance, reaching an even more negative value of -50.05 days. This suggests that the company has optimized its working capital management processes, resulting in a faster conversion of inventory and accounts receivable into cash, ultimately boosting liquidity. The consistent trend of decreasing the cash conversion cycle highlights CarGurus Inc's effectiveness in managing its financial resources and illustrates its commitment to improving operational efficiency and cash flow management.
Peer comparison
Dec 31, 2023