Cars.com Inc (CARS)
Working capital turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 719,152 | 718,327 | 713,009 | 702,291 | 689,183 | 677,778 | 668,040 | 662,737 | 653,876 | 643,980 | 635,938 | 628,595 | 623,683 | 618,386 | 606,225 | 552,704 | 547,503 | 546,682 | 554,380 | 600,578 |
Total current assets | US$ in thousands | 214,330 | 199,897 | 178,059 | 177,171 | 178,438 | 189,336 | 157,309 | 144,651 | 148,627 | 154,518 | 137,662 | 138,403 | 147,437 | 161,710 | 162,277 | 158,238 | 178,081 | 154,049 | 141,522 | 291,287 |
Total current liabilities | US$ in thousands | 116,885 | 111,389 | 116,585 | 109,364 | 145,748 | 130,965 | 120,563 | 107,348 | 106,012 | 106,229 | 84,825 | 95,802 | 94,290 | 96,387 | 95,972 | 98,422 | 90,368 | 112,876 | 94,999 | 98,310 |
Working capital turnover | 7.38 | 8.12 | 11.60 | 10.36 | 21.08 | 11.61 | 18.18 | 17.77 | 15.34 | 13.34 | 12.04 | 14.76 | 11.74 | 9.47 | 9.14 | 9.24 | 6.24 | 13.28 | 11.92 | 3.11 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $719,152K ÷ ($214,330K – $116,885K)
= 7.38
The working capital turnover of Cars.com Inc has shown fluctuations over the past few years based on the provided data. The ratio measures how efficiently the company is utilizing its working capital to generate revenue.
- The trend indicates an increasing working capital turnover from March 31, 2020, to December 31, 2022, with a peak at 21.08 on December 31, 2023. This suggests that the company was effectively utilizing its working capital during this period.
- However, there was a notable decline in the working capital turnover in the subsequent periods from March 31, 2024 to December 31, 2024. The ratio dropped to as low as 7.38 on December 31, 2024, reflecting a potential inefficiency in managing working capital during this time frame.
- It is essential for Cars.com Inc to closely monitor its working capital turnover and take appropriate measures to maintain or improve efficiency in utilizing its working capital to support the company's operations and growth.
Overall, the trend in working capital turnover indicates variations in the company's efficiency in managing its working capital, highlighting the importance of continuous monitoring and strategic management of working capital to achieve sustainable business operations.
Peer comparison
Dec 31, 2024