Cars.com Inc (CARS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 658,830 | 618,556 | 584,954 | 509,647 | 575,908 |
| Receivables | US$ in thousands | 125,373 | 107,930 | 98,893 | 93,649 | 101,762 |
| Receivables turnover | 5.25 | 5.73 | 5.92 | 5.44 | 5.66 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $658,830K ÷ $125,373K
= 5.25
The receivables turnover ratio for Cars.com has fluctuated over the past five years. The trend indicates a decrease in 2020 to 5.85 from 6.31 in 2019, followed by a slight increase to 6.06 in 2022. However, in 2023, the receivables turnover ratio further decreased to 5.50.
A higher receivables turnover ratio generally indicates that the company is efficient in collecting outstanding receivables from its customers. Conversely, a lower ratio may suggest potential issues with the collection process or an increase in credit sales.
It is important for Cars.com to monitor its receivables turnover ratio consistently and take necessary steps to ensure timely collection of receivables to maintain healthy cash flow and overall financial health.
Peer comparison
Dec 31, 2023