Cars.com Inc (CARS)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	39,198	31,715	39,069	67,719	13,549
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	145,748	106,012	94,290	90,368	98,806
Cash ratio		0.27	0.30	0.41	0.75	0.14

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($39,198K + $—K) ÷ $145,748K
= 0.27

The cash ratio of Cars.com has shown some fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Cars.com's cash ratio has decreased from 0.93 in 2020 to 0.36 in 2023. This decline may suggest a decrease in Cars.com's ability to cover its short-term liabilities with its current cash and cash equivalents.

It is important to note that a cash ratio below 1 indicates that the company may not have enough cash on hand to cover its short-term obligations. The decreasing trend in Cars.com's cash ratio warrants further investigation into the company's liquidity position and its ability to manage its short-term financial commitments effectively.