Cars.com Inc (CARS)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	234,936	234,124	233,591	177,822	122,205	120,162	117,913	117,002	114,959	115,306	115,406	114,121	114,200	112,138	108,644	103,337	101,536	98,938	98,593	100,000
Inventory	US$ in thousands	—	—	0	0	12,553	13,537	10,104	11,369	8,377	10,539	11,330	8,509	7,810	9,961	8,303	9,952	6,491	10,615	7,065	8,092
Inventory turnover		—	—	—	—	9.74	8.88	11.67	10.29	13.72	10.94	10.19	13.41	14.62	11.26	13.08	10.38	15.64	9.32	13.96	12.36

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $234,936K ÷ $—K
= —

Inventory turnover is a crucial financial metric that reflects how efficiently a company manages its inventory. A higher turnover ratio indicates that a company is selling its inventory quickly, which is generally a positive sign.

Looking at the inventory turnover data of Cars.com Inc, we can see fluctuations in the ratio over the analyzed periods. The trend shows some variability, indicating changes in the company's inventory management efficiency.

For the period from March 31, 2020, to December 31, 2021, the inventory turnover increased steadily from 12.36 to 14.62. This upward trend suggests that Cars.com Inc was selling its inventory more rapidly during this time, potentially reducing carrying costs and improving cash flow.

However, in the subsequent periods until December 31, 2023, the inventory turnover ratio fluctuated between 8.88 and 11.67. This variability may indicate shifts in the company's sales patterns, market demand, or inventory management strategies.

It is noteworthy that the inventory turnover ratio for the last reported periods, from March 31, 2024 onwards, is not available (denoted as "---"). The absence of this data point makes it challenging to assess the current state of Cars.com Inc's inventory management efficiency.

In conclusion, the analysis of Cars.com Inc's inventory turnover ratios reveals both periods of improvement and fluctuations. Monitoring this metric going forward will be essential to gauge the company's inventory management effectiveness and potential impact on its financial performance.