CarGurus (CARG)

Financial leverage 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
Total assets	US$ in thousands	824,536	778,161	753,331	870,803	918,927	1,048,720	1,040,320	1,051,580	927,102	982,855	1,009,710	945,805	931,574	819,917	784,205	719,393	502,298	460,551	407,436	406,438
Total stockholders’ equity	US$ in thousands	541,689	483,473	452,073	568,362	616,852	716,994	700,854	695,808	734,609	577,931	461,835	464,865	516,841	589,256	549,181	508,655	373,586	338,259	295,855	277,968
Financial leverage ratio		1.52	1.61	1.67	1.53	1.49	1.46	1.48	1.51	1.26	1.70	2.19	2.03	1.80	1.39	1.43	1.41	1.34	1.36	1.38	1.46

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $824,536K ÷ $541,689K
= 1.52

CarGurus' financial leverage ratio has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio started at 1.46 in March 2020, showing that the company had $1.46 of debt for every $1 of equity. It decreased gradually to 1.26 by December 2022, indicating a reduction in the proportion of debt relative to equity.

However, there was a significant increase in the financial leverage ratio to 2.19 by June 30, 2022, suggesting a higher level of debt compared to equity. This spike in leverage could indicate increased borrowing or decreased equity during that period.

Subsequently, the ratio decreased to 1.46 by September 30, 2024, showing a more balanced mix of debt and equity. This decrease could be a result of either reducing debt levels or increasing equity through retained earnings or equity issuance.

Overall, the trend in CarGurus' financial leverage ratio indicates fluctuations in the company's capital structure, with periods of higher and lower leverage. It is essential for investors and stakeholders to monitor these changes to assess the company's risk profile and financial health.