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.