Carvana (NYSE: CVNA) is working to change its business after the losses from its growth-at-any-cost approach resulted in Wall Street losing confidence in the company. That shift in sentiment can be plainly seen in the massive 95% or so stock price decline over the past year.

Worse, because of a heavy debt load, a clock is ticking on the company's efforts to turn sustainably profitable. The most recent push, a debt-exchange offer, is an example of how much trouble the company is in even though investors cheered the move.

At its core, Carvana is simply a used car dealer. Auto sales can be done quite profitably on a large scale, as competitor CarMax (NYSE: KMX) has proven. But this is a capital-intensive industry, given that buying cars to resell costs a lot of money.

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Source Fool.com