CarGurus (CARG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.52 | 1.49 | 1.26 | 1.80 | 1.34 |
CarGurus has consistently maintained a strong solvency position based on its debt-related ratios. The debt-to-assets ratio, which indicates the proportion of assets financed by debt, has consistently remained at 0.00 over the period from December 31, 2020, to December 31, 2024, indicating that the company has not relied on debt financing to fund its assets.
Similarly, the debt-to-capital ratio, which measures the proportion of capital contributed by debt, has remained at 0.00 during the same period, signifying that CarGurus has not heavily leveraged debt to fund its operations and investments.
The debt-to-equity ratio, a measure of financial leverage, has also stood at 0.00 throughout the period, indicating that the company's operations have been largely supported by equity rather than debt.
The financial leverage ratio, which compares the company's total assets to its equity, has shown some variability but has generally remained below 2, indicating a moderate level of financial leverage.
Overall, CarGurus' solvency ratios suggest that the company has a strong financial position with minimal reliance on debt to support its operations and investments.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 28.96 | 4,036.76 | 60.95 |
Interest coverage, which is a financial ratio used to measure a company's ability to pay its interest expenses on outstanding debt, shows significant fluctuations for CarGurus over the analyzed period.
In December 31, 2020, CarGurus had an interest coverage ratio of 60.95. This indicates that the company's operating income was nearly 61 times greater than its interest expenses, reflecting a strong ability to meet its debt obligations.
By December 31, 2021, the interest coverage ratio surged to 4,036.76, an exceptionally high level. This substantial increase suggests a significant improvement in the company's ability to cover its interest expenses, potentially signaling increased profitability and financial stability.
However, in December 31, 2022, the interest coverage ratio decreased to 28.96, indicating a lower ability to cover interest expenses compared to the previous year. While still a relatively favorable ratio, this dip may warrant further analysis to understand the reasons behind the decline.
Unfortunately, data for December 31, 2023, and December 31, 2024 are not available (marked as "—"), making it challenging to gauge the company's interest coverage during those periods. It is crucial for investors and stakeholders to monitor future financial reports to assess CarGurus' financial health and debt servicing capabilities.