Cars.com Inc (CARS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 20.66 | 26.60 | 24.96 | 23.33 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 20.66 | 26.60 | 24.96 | 23.33 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Cars.com Inc has shown some fluctuations over the past five years. In December 31, 2020, the company's cash conversion cycle was 23.33 days, which increased to 24.96 days by December 31, 2021. Subsequently, there was a further increase to 26.60 days by December 31, 2022. However, by December 31, 2023, the cash conversion cycle decreased to 20.66 days, indicating an improvement in the company's efficiency in managing its cash flow. Notably, by December 31, 2024, the cash conversion cycle reached 0.00 days, which may suggest an exceptionally efficient cash management system or a unique event impacting the cycle.
Overall, the trend in the cash conversion cycle reflects some variability in the company's ability to convert its inventory and receivables into cash. A decreasing cycle indicates a more efficient use of working capital and potentially faster cash flows, while an increasing cycle may signal delays in the conversion process. It is essential for the company to monitor and manage its cash conversion cycle effectively to optimize its liquidity and operational efficiency.
Peer comparison
Dec 31, 2024