Cars.com Inc (CARS)

Cash ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash and cash equivalents US$ in thousands 39,198 49,085 28,605 18,838 31,715 31,920 18,134 30,453 39,069 51,507 52,185 53,724 67,719 43,769 56,945 187,344 13,549 19,773 9,539 28,340
Short-term investments US$ in thousands — — — — — — — — — 19,394 — — — 16,274 — — — — — —
Total current liabilities US$ in thousands 145,748 130,965 120,563 107,348 106,012 106,229 84,825 95,802 94,290 96,387 95,972 98,422 90,368 112,876 94,999 98,310 98,806 121,805 112,518 119,956
Cash ratio 0.27 0.37 0.24 0.18 0.30 0.30 0.21 0.32 0.41 0.74 0.54 0.55 0.75 0.53 0.60 1.91 0.14 0.16 0.08 0.24

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 fluctuated over the past eight quarters, ranging from a low of 0.29 in Q1 2023 to a high of 0.54 in Q3 2023. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a stronger liquidity position, suggesting that the company has ample cash on hand to meet its immediate financial obligations. Conversely, a lower ratio may signal potential liquidity challenges.

Cars.com's Cash ratio has generally been above 0.4, indicating a healthy liquidity position overall. However, there was a noticeable dip in Q1 2023, which may warrant further investigation into the company's cash management practices during that period. It is essential for Cars.com to maintain a sufficient cash cushion to weather unexpected financial challenges and seize potential investment opportunities.