Cars.com Inc (CARS)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	39,198	31,715	39,069	67,719	13,549
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	125,373	107,930	98,893	93,649	101,762
Total current liabilities	US$ in thousands	145,748	106,012	94,290	90,368	98,806
Quick ratio		1.13	1.32	1.46	1.79	1.17

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($39,198K + $—K + $125,373K) ÷ $145,748K
= 1.13

The quick ratio of Cars.com has shown some fluctuation over the past five years, ranging from a low of 1.22 in 2023 to a high of 1.97 in 2020. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

In 2023, the quick ratio decreased to 1.22, which may indicate a slight weakening in the company's short-term liquidity position compared to the previous year. This could be a result of changes in the composition of assets and liabilities or adjustments in the company's operations.

Conversely, in 2020, the quick ratio was at its highest at 1.97, suggesting that Cars.com had a stronger ability to cover its short-term obligations with its liquid assets. This may have been a result of effective management of working capital or increased cash reserves.

Overall, while the quick ratio has fluctuated over the years, it generally remained above 1, indicating that Cars.com has had a healthy level of liquidity to meet its short-term debt obligations. It is important for investors and stakeholders to monitor the company's quick ratio to assess its liquidity position and financial health.