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.