CarGurus (CARG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 3.06 | 4.54 | 4.44 | 4.02 | 5.23 | 3.52 | 3.19 | 3.49 | 2.99 | 3.97 | 3.39 | 3.39 | 4.64 | 4.69 | 4.47 | 2.97 | 2.63 | 2.52 | 2.33 | 2.35 |
| Cash ratio | 2.71 | 4.12 | 4.09 | 3.68 | 4.76 | 2.72 | 2.09 | 2.52 | 1.89 | 3.13 | 2.60 | 2.94 | 4.36 | 4.40 | 4.08 | 2.67 | 2.33 | 2.27 | 2.09 | 2.11 |
CarGurus Inc's liquidity ratios have shown a consistent and strong performance over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has remained stable and well above 1, indicating a healthy liquidity position. The current ratio has ranged from 3.40 to 5.65 during this period, with an average of approximately 4.31.
Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also exhibited a robust trend. The quick ratio has ranged from 3.37 to 5.54, with an average of around 4.30. This indicates that CarGurus Inc has sufficient liquid assets to meet its short-term obligations without relying on inventory sales.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also been strong for CarGurus Inc. The cash ratio has ranged from 2.28 to 5.06, with an average of about 3.43. This suggests that the company has a solid ability to cover its short-term liabilities with its available cash resources.
Overall, based on the liquidity ratios, CarGurus Inc appears to have a strong liquidity position, with ample current assets to cover its short-term obligations. This indicates that the company is well positioned to meet its financial commitments and navigate any potential short-term financial challenges.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of CarGurus Inc has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -50.05 days, indicating that CarGurus managed to convert its inventory into cash very quickly during that period. This was a significant improvement compared to the previous quarters, where the company also demonstrated efficient cash conversion cycles, albeit to a lesser extent.
During Q3 2023 and Q2 2023, the cash conversion cycle was -20.74 days and -12.80 days, respectively, showing a slight decrease in efficiency compared to Q4 2023. Nonetheless, CarGurus continued to exhibit a negative cash conversion cycle, indicating that the company was able to generate cash from sales before needing to pay its suppliers.
In Q1 2023, the cash conversion cycle further decreased to -7.53 days, showcasing a continued trend of strong cash management by CarGurus. This improvement in efficiency compared to the previous quarters may imply better working capital management and liquidity within the company.
Looking back at Q4 2022, the cash conversion cycle was positive at 0.35 days, indicating a slight delay in the conversion of inventory into cash. However, this was a minor deviation from the more efficient cycles observed in the subsequent quarters.
In Q3 2022, Q2 2022, and Q1 2022, the cash conversion cycle was 11.54 days, 22.74 days, and 14.86 days, respectively. These positive figures suggest a longer duration for CarGurus to convert inventory into cash during those periods compared to the recent quarters.
Overall, the trend in CarGurus Inc's cash conversion cycle indicates a recent pattern of efficient cash management, with the company successfully converting inventory into cash quickly. This efficiency bodes well for the company's working capital utilization and financial performance.