CarGurus (CARG)

Current ratio

		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
Total current assets	US$ in thousands	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	218,954	206,182	188,841	179,406
Total current liabilities	US$ in thousands	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	73,758	72,378	70,392	65,474
Current ratio		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	2.97	2.85	2.68	2.74

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $391,191K ÷ $115,178K
= 3.40

CarGurus Inc's current ratio has exhibited variability over the past eight quarters, ranging from a low of 3.40 in Q4 2023 to a high of 5.65 in Q4 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio greater than 1 indicates that the company has more assets than liabilities due within the next year.

The current ratio has generally been above 1 across all quarters, suggesting that CarGurus Inc has had sufficient current assets to meet short-term obligations. The highest ratio of 5.65 in Q4 2022 indicates a strong liquidity position during that period. However, the ratio dropped to 3.40 in Q4 2023, which may indicate a decrease in the company's liquidity or an increase in short-term liabilities relative to current assets.

Overall, while the current ratio has fluctuated, it has generally been at healthy levels, providing an indication of CarGurus Inc's ability to manage its short-term financial obligations effectively.