Cars.com Inc (CARS)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	413,278	383,866	383,829	1,261,660	869,544
Payables	US$ in thousands	22,259	18,230	15,420	16,512	12,431
Payables turnover		18.57	21.06	24.89	76.41	69.95

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $413,278K ÷ $22,259K
= 18.57

Based on the data provided, the payables turnover ratio for Cars.com has fluctuated over the past five years. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by paying its suppliers. A higher ratio suggests that the company is paying its suppliers more frequently within a year.

In 2019, the payables turnover ratio was the highest at 8.01, indicating that the company paid its suppliers approximately 8 times during that year. However, the ratio decreased to 6.15 in 2020, showing a slight decline in the frequency of payments to suppliers.

In the following years, the payables turnover ratio continued to fluctuate, with values of 7.41 in 2021, 6.31 in 2022, and 5.49 in 2023. The decreasing trend from 2019 to 2023 may suggest that Cars.com is taking longer to pay its suppliers, which could impact relationships with vendors and potentially result in increased costs or strained supplier relations.

It is important for the company to monitor and manage its payables turnover ratio effectively to ensure timely payments to suppliers while maintaining positive supplier relationships.