CarGurus (CARG)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 304,193 | 246,748 | 218,365 | 249,128 | 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 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 0 | 20,724 | 91,824 | 90,490 | — | 0 | 0 | 30,000 | 60,000 | 90,000 | 90,000 | 85,000 | 100,000 | 100,000 | 0 | 43,000 | 81,281 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 3.27 | 2.23 | 1.95 | 2.14 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($304,193K
+ $0K
+ $—K)
÷ $93,051K
= 3.27
The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy as it indicates that the company can cover its current liabilities with its quick assets.
Based on the data provided, CarGurus' quick ratio has fluctuated over the past few years. The quick ratio ranged from a low of 1.89 on December 31, 2021, to a high of 4.76 on December 31, 2022. This variability in the quick ratio suggests changes in the company's liquidity position and its ability to meet short-term obligations.
It is important to note that a quick ratio of less than 1 may indicate potential liquidity issues, as the company may struggle to cover its current liabilities with its quick assets alone. Therefore, investors and creditors should monitor CarGurus' quick ratio closely to assess its short-term liquidity position and financial health.
Peer comparison
Dec 31, 2024