CarGurus (CARG)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $616,852K
= 0.00
The debt-to-equity ratio of CarGurus Inc has consistently been 0.00 for the past five years, showcasing a debt-free capital structure. This indicates that the company has been largely reliant on equity financing rather than debt to fund its operations and growth. A debt-to-equity ratio of 0.00 signifies that the company has no debt in relation to its equity, which can be perceived positively by investors and creditors as it indicates a lower financial risk and potentially signals strong financial health and stability. However, it is important to note that a solely equity-funded structure may also imply limited leverage for potential growth or investment opportunities. Overall, the consistent 0.00 debt-to-equity ratio reflects CarGurus Inc's strategic financial approach and stability.
Peer comparison
Dec 31, 2023