Cars.com Inc (CARS)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	50,673	39,198	31,715	39,069	67,719
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	116,885	145,748	106,012	94,290	90,368
Cash ratio		0.43	0.27	0.30	0.41	0.75

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($50,673K + $—K) ÷ $116,885K
= 0.43

Based on the data provided, the cash ratio of Cars.com Inc has shown some fluctuations over the years. The cash ratio, which is a measure of a company's ability to cover its short-term liabilities with its available cash and cash equivalents, was 0.75 as of December 31, 2020.

However, over the next few years, the cash ratio decreased to 0.41 as of December 31, 2021, 0.30 as of December 31, 2022, and further decreased to 0.27 as of December 31, 2023. This may indicate that the company's liquidity position weakened during these years, as it had less cash relative to its current liabilities.

There was a slight improvement in the cash ratio to 0.43 as of December 31, 2024, which could suggest that the company started to build up its cash reserves or manage its short-term liabilities more effectively.

Overall, a declining trend in the cash ratio may raise concerns about the company's ability to meet its short-term obligations using its existing cash resources. It would be important for Cars.com Inc to closely monitor its liquidity position and take proactive measures to strengthen its cash reserves if necessary.