CarGurus (CARG)

Current ratio

		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
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
Current ratio		4.20	2.95	2.47	2.69	3.40	4.93	4.83	4.38	5.65	4.06	3.58	3.85	3.30	4.31	3.75	3.81	4.99	5.04	5.01	3.60

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $391,206K ÷ $93,051K
= 4.20

The current ratio of CarGurus has exhibited fluctuations over the years. The ratio indicates the company's ability to cover its short-term obligations with its current assets. CarGurus' current ratio has generally been above 1, suggesting that the company has had more than enough current assets to cover its short-term liabilities.

The trend shows that the current ratio increased from March 2020 to December 2022, reaching its peak at 5.65, indicating a strong ability to meet short-term obligations. However, starting from March 2023, the current ratio began to decrease gradually, indicating a potential decrease in liquidity. The ratio hit its lowest point of 2.47 in June 2024 before slightly recovering to 4.20 by December 2024.

Overall, while CarGurus maintained a current ratio above 1 throughout the period, the decreasing trend in recent quarters suggests a potential diminishing liquidity position, which may warrant further analysis and monitoring to ensure the company's ability to meet its short-term obligations.