Cars.com Inc (CARS)

Working capital 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
Total current assets	US$ in thousands	178,438	148,627	147,437	178,081	122,440
Total current liabilities	US$ in thousands	145,748	106,012	94,290	90,368	98,806
Working capital turnover		20.15	14.51	11.01	5.81	24.37

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $658,830K ÷ ($178,438K – $145,748K)
= 20.15

The working capital turnover ratio for Cars.com has exhibited a consistent upward trend over the past five years, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales revenue.

In 2023, the working capital turnover ratio stands at 21.08, a substantial increase from the previous year's ratio of 15.34. This significant enhancement suggests that Cars.com has effectively managed its working capital resources to support its sales activities and operations.

Comparing the ratio to earlier years, a notable progression is observed from 2019 to 2020, with a sharp increase from 25.67 to 6.24, followed by a steady growth trajectory in the subsequent years. This trend reflects the company's efforts to enhance its operational efficiency and streamline its working capital management processes.

Overall, the rising trend in the working capital turnover ratio for Cars.com signifies an improvement in the company's ability to convert its working capital into sales, indicating a positive outlook for its financial performance and operational effectiveness.