CarGurus (CARG)

Quick 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
Cash	US$ in thousands	291,363	355,330	363,060	456,696	469,517	404,429	338,238	315,005	231,944	231,091	184,642	140,668	190,299	245,941	133,199	74,451	59,920	29,514	27,842	29,939
Short-term investments	US$ in thousands	20,724	91,824	90,490	—	—	—	30,000	60,000	90,000	90,000	85,000	100,000	100,000	—	43,000	81,281	111,692	134,808	119,327	108,500
Receivables	US$ in thousands	39,963	46,107	37,820	42,395	46,817	120,059	193,431	144,718	189,324	85,182	81,863	36,364	18,235	16,322	16,844	17,536	22,124	17,892	17,081	15,111
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($291,363K + $20,724K + $39,963K) ÷ $115,178K
= 3.06

The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.

CarGurus Inc's quick ratio has shown fluctuations over the past eight quarters. In Q4 2023, the quick ratio was 3.37, which indicates that the company had $3.37 in liquid assets available for every $1 of current liabilities. This ratio decreased compared to the previous quarter, suggesting a potential decrease in liquidity.

Looking at the trend over the past year, the quick ratio has generally been above 1, indicating that CarGurus Inc has maintained a healthy level of liquidity to cover its short-term obligations. The highest quick ratio was observed in Q4 2022 at 5.54, reflecting a strong ability to meet current liabilities with liquid assets.

Overall, CarGurus Inc's quick ratio has displayed variability but has generally remained at acceptable levels, signaling a sufficient liquidity position to fulfill short-term financial obligations. It is essential for the company to continue monitoring its quick ratio to ensure operational stability and financial health.