Cars.com Inc (CARS)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	178,438	148,627	147,437	178,081	122,440
Total current liabilities	US$ in thousands	145,748	106,012	94,290	90,368	98,806
Current ratio		1.22	1.40	1.56	1.97	1.24

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $178,438K ÷ $145,748K
= 1.22

The current ratio of Cars.com has fluctuated over the past five years, indicating changes in the company's short-term liquidity and ability to meet its current obligations. The current ratio stood at 1.22 as of December 31, 2023, representing a decrease from the previous year's ratio of 1.40. This suggests that the company may have a slightly lower level of current assets relative to its current liabilities compared to the prior year.

Looking back at the trend, the current ratio was highest in 2020 at 1.97, signifying a relatively stronger liquidity position for the company at that time. In contrast, the ratio was lowest in 2019 at 1.24, indicating potential liquidity challenges or a higher proportion of current liabilities compared to current assets.

Overall, analyzing the current ratio of Cars.com over the years provides insight into the company's short-term financial health and its ability to cover its immediate financial obligations. The management should continue monitoring this ratio to ensure a balance between current assets and current liabilities to support operational needs and financial stability.