Cars.com Inc (CARS)

Activity ratios

Short-term

Turnover ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 32.92 29.63 38.79 33.98 45.82 37.15 34.64 45.82 49.15 37.29 43.41 34.96 194.37 119.38 245.91 207.86 107.53 83.11 12.65 13.26
Receivables turnover 5.25 5.45 5.71 5.51 5.73 5.68 5.73 6.15 5.92 5.94 5.73 5.62 5.57 5.84 7.13 6.08 5.74 5.85 6.45 6.64
Payables turnover 18.57 21.45 19.71 22.17 21.06 21.03 29.71 23.19 24.89 23.60 14.19 15.20 76.41 63.69 120.62 95.43 56.45 100.47 7.44 8.11
Working capital turnover 20.15 11.05 17.27 16.85 14.51 12.59 11.33 13.86 11.01 9.02 8.68 8.76 5.94 12.64 11.42 2.99 24.70 76.72 1,882.76 30.33

Inventory Turnover:
There is no data provided for Inventory Turnover in the table, so we are unable to assess how efficiently Cars.com is managing its inventory levels.

Receivables Turnover:
The Receivables Turnover ratio has been relatively stable over the quarters, ranging from 5.50 to 6.06. This indicates that Cars.com is able to efficiently collect payments from customers, with a higher turnover generally being more favorable.

Payables Turnover:
The Payables Turnover ratio has shown some fluctuation but has generally been within a range of 5.49 to 8.73. A higher turnover indicates that the company is paying its suppliers more frequently, which could either be a positive sign of strong supplier relationships or potentially indicate difficulties in managing cash flow.

Working Capital Turnover:
The Working Capital Turnover ratios have varied across the quarters, with values ranging from 11.61 to 21.08. A higher turnover ratio signifies that the company efficiently utilizes its working capital to generate revenue. The increasing trend in the ratios indicates improvement in the efficiency of Cars.com in generating revenue relative to its working capital.

In conclusion, while Cars.com appears to be managing its receivables efficiently, there is limited insight into its inventory management. The fluctuations in payables turnover suggest potential variations in cash flow management. Overall, the improvement in working capital turnover indicates a positive trend in how effectively the company is utilizing its resources to generate revenue.

Average number of days

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 11.09 12.32 9.41 10.74 7.97 9.82 10.54 7.97 7.43 9.79 8.41 10.44 1.88 3.06 1.48 1.76 3.39 4.39 28.85 27.53
Days of sales outstanding (DSO) days 69.46 66.92 63.97 66.23 63.69 64.24 63.65 59.34 61.71 61.49 63.72 64.95 65.57 62.48 51.23 60.07 63.63 62.35 56.61 54.99
Number of days of payables days 19.66 17.02 18.52 16.46 17.33 17.36 12.29 15.74 14.66 15.46 25.71 24.01 4.78 5.73 3.03 3.82 6.47 3.63 49.08 45.03

Days of inventory on hand (DOH) measures how many days it takes for a company to sell its inventory. Unfortunately, the table provided does not contain data for this ratio, so we cannot analyze this aspect of Cars.com's activity.

Days of sales outstanding (DSO) indicates how long it takes for a company to collect payment from its customers. Over the past eight quarters, Cars.com's DSO has ranged from 60.25 days to 66.40 days, showing a consistent level of efficiency in collecting payments from customers. The relatively stable trend in DSO implies that the company has been successful in managing its accounts receivable effectively.

Number of days of payables represents the average number of days a company takes to pay its suppliers. Cars.com's payables days have fluctuated between 54.36 days to 66.48 days over the past two years. A higher number of days of payables may indicate that the company is taking longer to pay its suppliers, which could be a strategy to manage cash flow or negotiate better payment terms.

Overall, based on the provided data, Cars.com appears to have maintained a relatively stable performance in managing its accounts receivable and payables over the past eight quarters. It would be beneficial for the company to focus on optimizing its inventory management to complete the picture of its activity ratios analysis.

Long-term

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 15.02 14.66 14.04 13.76 13.68 13.39 13.75 13.75 13.60 12.75 12.39 12.05 12.61 12.67 13.06 13.19 13.36 13.90 14.98 15.65
Total asset turnover 0.56 0.58 0.58 0.63 0.60 0.58 0.57 0.55 0.58 0.59 0.56 0.51 0.48 0.49 0.49 0.46 0.29 0.29 0.24 0.25

Cars.com's long-term activity ratios reflect how efficiently the company is utilizing its assets to generate revenue over time. The fixed asset turnover ratio has been relatively stable, ranging between 14.46 and 15.72 over the past eight quarters. This indicates that Cars.com is generating approximately $14.46 to $15.72 in revenue for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has shown some fluctuation, with values ranging from 0.59 to 0.66. A lower total asset turnover ratio compared to the fixed asset turnover ratio suggests that Cars.com may have a significant portion of its assets tied up in non-operating or non-revenue generating assets.

Overall, the fixed asset turnover ratio indicates that Cars.com efficiently utilizes its fixed assets to generate revenue. However, the fluctuation in the total asset turnover ratio may warrant further investigation into the composition and efficiency of the company's total asset base.