CarGurus (CARG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 391,191 | 557,366 | 563,108 | 331,976 | 218,954 |
| Total current liabilities | US$ in thousands | 115,178 | 98,733 | 170,709 | 66,536 | 73,758 |
| Current ratio | 3.40 | 5.65 | 3.30 | 4.99 | 2.97 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $391,191K ÷ $115,178K
= 3.40
The current ratio of CarGurus Inc has fluctuated over the past five years. As of December 31, 2023, the current ratio stands at 3.40, indicating that the company's current assets are 3.40 times greater than its current liabilities. This suggests that CarGurus Inc has a strong ability to meet its short-term obligations using its current assets.
Compared to the previous years, the current ratio has decreased from 5.65 in 2022 and 4.99 in 2020, but remains higher than the ratios in 2021 and 2019. This decline may be attributed to changes in the company's current asset and liability composition, highlighting potential shifts in liquidity and working capital management.
Overall, a current ratio of 3.40 as of December 31, 2023, indicates that CarGurus Inc maintains a healthy liquidity position, albeit lower than in the previous year. It is important for stakeholders to monitor future trends in the current ratio to assess the company's ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2023