Cars.com Inc (CARS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 37.49 | 41.12 | 31.28 | 35.47 | 26.60 | 33.36 | 35.83 | 27.21 | 24.96 | 32.42 | 27.89 | 35.15 | 23.33 | 39.16 | 26.16 | 29.54 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 37.49 | 41.12 | 31.28 | 35.47 | 26.60 | 33.36 | 35.83 | 27.21 | 24.96 | 32.42 | 27.89 | 35.15 | 23.33 | 39.16 | 26.16 | 29.54 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates efficient management of working capital and faster turnover of assets.
Looking at the historical data from March 31, 2020, to December 31, 2024, for Cars.com Inc, we can observe fluctuations in the cash conversion cycle. The cycle ranged from a low of 23.33 days on December 31, 2020, to a high of 41.12 days on September 30, 2023.
The trend in the cash conversion cycle shows variability over time, indicating changes in the efficiency of Cars.com Inc in managing its working capital. A decreasing trend in the cycle suggests improved efficiency in converting inventories into sales and ultimately into cash, which is favorable for the company's liquidity position.
However, it's worth noting that the data shows zero days for the cash conversion cycle on March 31, June 30, September 30, and December 31, 2024. This could be due to missing data or a change in the company's reporting practices.
In conclusion, monitoring the cash conversion cycle is essential for evaluating Cars.com Inc's operational efficiency and liquidity management. A decreasing trend in the cycle indicates better working capital management, which can positively impact the company's financial health.
Peer comparison
Dec 31, 2024