The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. CarGurus's quick ratio for the quarter that ended in Dec. 2023 was 3.39.
CarGurus has a quick ratio of 3.39. It generally indicates good short-term financial strength.
The historical rank and industry rank for CarGurus's Quick Ratio or its related term are showing as below:
FRA:0C6'
s Quick Ratio Range Over the Past 10 Years
Min: 2.94 Med: 3.39 Max: 5.59
Current: 3.39
During the past 9 years, CarGurus's highest Quick Ratio was 5.59. The lowest was 2.94. And the median was 3.39.
FRA:0C6's Quick Ratio is ranked better than 91.2% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 1.05
vs FRA:0C6: 3.39
CarGurus Quick Ratio Historical Data
The historical data trend for CarGurus's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto & Truck Dealerships subindustry, CarGurus's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CarGurus's Quick Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarGurus's Quick Ratio distribution charts can be found below:
* The bar in red indicates where CarGurus's Quick Ratio falls into.
CarGurus Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
CarGurus's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CarGurus (FRA:0C6) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
CarGurus Quick Ratio Related Terms
Thank you for viewing the detailed overview of CarGurus's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
CarGurus Inc is a company that acts as an online automotive marketplace connecting buyers and sellers of new and used cars. The company provides three types of marketplace Listing products, Restricted Listings, and Enhanced or Featured Listing through which it offers real-time and historical data analyzing the connections and pricing analysis. It also provides all dealers with a web widget to place Deal Rating Badges, which show deal rating. The listing platforms offer auto manufacturers and others to buy advertising on the company's site and target consumers based on the make, model, and zip code of the cars. The company operates through two geographical segments namely United States and the International. It generates majority of revenue from the United States.
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