CarGurus (CARG)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 304,193 | 291,363 | 469,517 | 231,944 | 190,299 |
| Short-term investments | US$ in thousands | 0 | 20,724 | 0 | 90,000 | 100,000 |
| Total current liabilities | US$ in thousands | 93,051 | 115,178 | 98,733 | 170,709 | 66,536 |
| Cash ratio | 3.27 | 2.71 | 4.76 | 1.89 | 4.36 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($304,193K
+ $0K)
÷ $93,051K
= 3.27
The cash ratio of CarGurus, which represents the company's ability to cover its short-term liabilities with its cash and cash equivalents, has exhibited fluctuations over the years. As of December 31, 2020, the cash ratio stood at a healthy 4.36, indicating the company had ample liquid assets to meet its immediate obligations. However, by December 31, 2021, the ratio decreased to 1.89, suggesting a tighter liquidity position compared to the previous year.
Subsequently, on December 31, 2022, the cash ratio increased significantly to 4.76, reflecting improved liquidity and a stronger cash position. However, by December 31, 2023, there was a slight decline in the ratio to 2.71, signaling a slightly decreased ability to cover short-term liabilities with available cash.
As of the most recent data on December 31, 2024, the cash ratio rose to 3.27, indicating a moderate improvement in liquidity compared to the previous year but still lower than the peak observed in 2022. Overall, CarGurus has demonstrated varying levels of liquidity throughout the years, emphasizing the importance of closely monitoring its cash reserves to ensure the company can meet its financial obligations effectively.
Peer comparison
Dec 31, 2024