Cars.com Inc (CARS)

Working capital 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
Total current assets US$ in thousands 178,438 189,336 157,309 144,651 148,627 154,518 137,662 138,403 147,437 161,710 162,277 158,238 178,081 154,049 141,522 291,287 122,440 129,572 112,844 140,872
Total current liabilities US$ in thousands 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 98,806 121,805 112,518 119,956
Working capital turnover 20.15 11.05 17.27 16.85 14.51 12.59 11.33 13.86 11.01 9.02 8.68 8.76 5.94 12.64 11.42 2.99 24.70 76.72 1,882.76 30.33

December 31, 2023 calculation

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

Cars.com's working capital turnover has shown fluctuations over the past eight quarters. In Q4 2023, the working capital turnover ratio was at its highest at 21.08, indicating that the company generated revenue 21.08 times over its average working capital during the quarter. This was a significant improvement compared to Q3 2023, where the ratio dropped to 11.61.

The trend in working capital turnover ratios shows that the company's efficiency in utilizing its working capital to generate revenue has varied over time. While Q2 2023 and Q1 2023 also exhibited strong turnover ratios of 18.18 and 17.77 respectively, there was a notable increase in Q4 2023.

Comparing the latest quarter to the same quarter in the previous year, Cars.com has exhibited growth in its working capital turnover, as Q4 2023's ratio of 21.08 exceeds Q4 2022's 15.34. This suggests that the company has become more efficient in managing its working capital to generate revenue in the most recent quarter.

Overall, Cars.com's working capital turnover has shown positive momentum and improvement in efficiency in recent quarters, as evidenced by the increasing ratios. This indicates that the company has been effectively managing its working capital to drive revenue generation.