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CarGurus Altman Z-Score

: 12.39 (As of Today)
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Good Sign:

Altman Z-score of 12.39 is strong.

CarGurus has a Altman Z-Score of 12.39, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for CarGurus's Altman Z-Score or its related term are showing as below:

NAS:CARG' s Altman Z-Score Range Over the Past 10 Years
Min: 2.67   Med: 19.52   Max: 60.35
Current: 12.39

2.67
60.35

During the past 6 years, CarGurus's highest Altman Z-Score was 60.35. The lowest was 2.67. And the median was 19.52.


CarGurus Altman Z-Score Historical Data

The historical data trend for CarGurus's Altman Z-Score 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
Altman Z-Score
Premium Member Only - 40.91 32.77 19.75 19.52

CarGurus Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Altman Z-Score 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 17.90 14.69 19.52 9.91 10.08

Competitive Comparison

For the Internet Content & Information subindustry, CarGurus's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Interactive Media industry and Communication Services sector, CarGurus's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where CarGurus's Altman Z-Score falls into.



CarGurus Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

CarGurus's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.3637+1.4*0.2293+3.3*0.1807+0.6*16.9248+1.0*0.8775
=12.39

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2021:
Total Assets was $784.2 Mil.
Total Current Assets was $388.8 Mil.
Total Current Liabilities was $103.5 Mil.
Retained Earnings was $179.8 Mil.
Pre-Tax Income was 38.538 + 26.013 + 33.408 + 43.772 = $141.7 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.0 Mil.
Revenue was 217.748 + 171.368 + 151.553 + 147.472 = $688.1 Mil.
Market Cap (Today) was $3,977.7 Mil.
Total Liabilities was $235.0 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(388.776 - 103.547)/784.205
=0.3637

X2=Retained Earnings/Total Assets
=179.825/784.205
=0.2293

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(141.731 - 0)/784.205
=0.1807

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3977.734/235.024
=16.9248

X5=Revenue/Total Assets
=688.141/784.205
=0.8775

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

CarGurus has a Altman Z-Score of 12.39 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


CarGurus  (NAS:CARG) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


CarGurus Altman Z-Score Related Terms

Thank you for viewing the detailed overview of CarGurus's Altman Z-Score 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

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