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CarGurus Quick Ratio

: 3.75 (As of Jun. 2021)
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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 Jun. 2021 was 3.75.

CarGurus has a quick ratio of 3.75. 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:

NAS:CARG' s Quick Ratio Range Over the Past 10 Years
Min: 2.57   Med: 3.25   Max: 5.04
Current: 3.75

2.57
5.04

During the past 6 years, CarGurus's highest Quick Ratio was 5.04. The lowest was 2.57. And the median was 3.25.

NAS:CARG's Quick Ratio is ranked higher than
66% of the 76 Companies
in the Interactive Media industry.

( Industry Median: 2.10 vs. NAS:CARG: 3.75 )

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.

* Premium members only.

CarGurus Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Quick Ratio
Premium Member Only 2.94 3.66 3.07 2.97 4.99

CarGurus Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.01 5.04 4.99 3.81 3.75

Competitive Comparison

For the Internet Content & Information 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 Quick Ratio Distribution

For the Interactive Media industry and Communication Services 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. 2020 is calculated as

Quick Ratio (A: Dec. 2020 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(331.976-0)/66.536
=4.99

CarGurus's Quick Ratio for the quarter that ended in Jun. 2021 is calculated as

Quick Ratio (Q: Jun. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(388.776-0)/103.547
=3.75

* 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  (NAS:CARG) 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 Business Description

CarGurus logo
Industry
Traded in Other Exchanges
Address
2 Canal Park, 4th Floor, Cambridge, MA, USA, 02141
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 International. Most of the company's revenue comes from the United States.
Executives
Steinert Langley director, 10 percent owner, officer: CEO and Chairman C/O CARGURUS, INC. 2 CANAL PARK, 4TH FLOOR CAMBRIDGE MA 02141
Caputo Thomas Michael officer: Chief Product Officer C/O CARGURUS, INC. 2 CANAL PARK, 4TH FL. CAMBRIDGE MA 02141
Eldridge Andrea Lee officer: Chief People Officer 50 PEMBERTON STREET CAMBRIDGE MA 02140
Patton Kathleen Bender officer: General Counsel and Secretary 2 CANAL PARK 4TH FLOOR CAMBRIDGE MA 02141
Welch Sarah Amory officer: Chief Marketing Officer C/O CARGURUS, INC. 2 CANAL PARK, 4TH FL. CAMBRIDGE MA 02141
Zales Samuel officer: COO and President C/O CARGURUS, INC. 2 CANAL PARK, 4TH FL. CAMBRIDGE MA 02141
Lomeli Kyle officer: Chief Technology Officer 120 SYCAMORE STREET BELMONT MA 02478
Schwartz Greg M director C/O ZILLOW GROUP, INC. 1301 SECOND AVENUE, FLOOR 31 SEATTLE WA 98101
Smith Ian G director C/O CARGURUS, INC. 2 CANAL PARK, 4TH FLOOR CAMBRIDGE MA 02141
Parafestas Anastasios director C/O THE BOLLARD GROUP LLC ONE JOY STREET BOSTON MA 02108
Conine Steven director C/O WAYFAIR INC. 4 COPLEY PLACE BOSTON MA 02116
Hickok Lori A director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HICKOK LORI A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Kaufer Stephen director C/O TRIPADVISOR, INC. 141 NEEDHAM STREET NEWTON MA 02464
Chrzan Oliver Ian officer: Chief Technology Officer 86 WASHINGTON ST. NEWTON MA 02458
Argonaut 22 Llc 10 percent owner 1 JOY STREET BOSTON MA 02108

CarGurus Headlines

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