Cars.com Inc (CARS)

Cash ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash and cash equivalents US$ in thousands 50,673 49,573 29,071 31,363 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
Short-term investments US$ in thousands — — — — — — — — — — — — — 19,394 — — — 16,274 — —
Total current liabilities US$ in thousands 116,885 111,389 116,585 109,364 145,748 130,965 120,563 107,348 106,012 106,229 84,825 95,802 94,290 96,387 95,972 98,422 90,368 112,876 94,999 98,310
Cash ratio 0.43 0.45 0.25 0.29 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

December 31, 2024 calculation

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

The cash ratio of Cars.com Inc has fluctuated over the years, indicating the company's ability to cover its short-term liabilities with its cash and cash equivalents. From March 31, 2020, to December 31, 2024, the cash ratio ranged from a high of 1.91 to a low of 0.18.

The ratio peaked in March 2020 at 1.91, suggesting that the company had $1.91 in cash and cash equivalents for every dollar of current liabilities. However, it declined significantly by June 2022 to 0.21, indicating a decreased ability to cover short-term obligations with its cash reserves.

The ratios have shown some variability since then, with fluctuations seen in subsequent quarters. As of December 31, 2024, the cash ratio stood at 0.43, signaling an improvement compared to the low point in March 2024.

Overall, the trend in Cars.com Inc's cash ratio suggests some volatility in its liquidity position over the years, emphasizing the importance of ongoing monitoring and management of the company's cash and short-term liquidity position.