CarGurus (CARG)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 616,852 | 734,609 | 516,841 | 373,586 | 256,855 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $616,852K)
= 0.00
The debt-to-capital ratio for CarGurus Inc has consistently been at 0.00 for the years 2019 to 2023. This indicates that the company has not utilized any debt in its capital structure during these years. A debt-to-capital ratio of 0.00 suggests that the company is financing its operations entirely through equity, which can imply a lower financial risk as there are no debt obligations to service. However, it is important to note that a zero debt-to-capital ratio may also signal missed opportunities for leveraging debt for potential growth or tax advantages. Overall, CarGurus Inc's consistent zero debt-to-capital ratio reflects a conservative debt management strategy and a reliance on equity financing for its operations and growth.
Peer comparison
Dec 31, 2023