Cars.com Inc (CARS)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	214,330	178,438	148,627	147,437	178,081
Total current liabilities	US$ in thousands	116,885	145,748	106,012	94,290	90,368
Current ratio		1.83	1.22	1.40	1.56	1.97

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $214,330K ÷ $116,885K
= 1.83

Based on the provided data, the current ratio of Cars.com Inc has shown some fluctuations over the past five years.

As of December 31, 2020, the current ratio stood at 1.97, indicating that the company had $1.97 in current assets for every $1 in current liabilities, reflecting a strong liquidity position.

However, by December 31, 2021, the current ratio decreased to 1.56, signaling a slight decrease in liquidity compared to the previous year. This could indicate a potential strain on the company's ability to meet its short-term obligations with its current assets.

The current ratio continued to decline to 1.40 by December 31, 2022, and further dropped to 1.22 by December 31, 2023. These decreasing trends suggest that Cars.com Inc may be experiencing challenges in managing its short-term obligations relative to its current assets during these periods.

On a positive note, by December 31, 2024, the current ratio improved to 1.83, indicating a healthier liquidity position compared to the previous year. This improvement suggests that the company may have taken steps to enhance its liquidity or effectively manage its current assets and liabilities.

In summary, the analysis of the current ratio for Cars.com Inc over the five-year period reflects fluctuations in liquidity, with some years showing stronger liquidity positions while others indicating potential challenges in meeting short-term obligations. It is essential for the company to monitor and manage its current assets and liabilities effectively to maintain a stable liquidity position.