Cars.com Inc (CARS)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	658,830	645,165	634,703	628,503	618,556	607,735	598,672	590,537	584,954	589,024	575,606	524,000	521,274	520,453	531,218	577,629	583,693	595,852	613,781	634,454
Receivables	US$ in thousands	125,373	118,285	111,237	114,035	107,930	106,966	104,402	96,013	98,893	99,233	100,491	93,238	93,649	89,094	74,553	95,069	101,762	101,782	95,197	95,592
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $658,830K ÷ $125,373K
= 5.25

The receivables turnover ratio reflects how efficiently a company is able to collect on its credit sales within a specific period. Cars.com's receivables turnover ratios over the past eight quarters have ranged from 5.50 to 6.55.

The trend in the receivables turnover ratio has been relatively stable, hovering around the 6.00 mark in most quarters. A higher receivables turnover ratio indicates a shorter period for collecting receivables, suggesting that Cars.com is effectively managing its accounts receivable and converting credit sales into cash quickly.

The slight fluctuations in the ratio over the quarters may be due to seasonal factors impacting the timing of credit sales and collections. Overall, the consistency and relatively high values of the receivables turnover ratio for Cars.com suggest efficient credit management practices and a proactive approach to cash flow management.