Cars.com Inc (CARS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 50,673 | 39,198 | 31,715 | 39,069 | 67,719 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 116,885 | 145,748 | 106,012 | 94,290 | 90,368 |
| Quick ratio | 0.43 | 0.27 | 0.30 | 0.41 | 0.75 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($50,673K
+ $—K
+ $—K)
÷ $116,885K
= 0.43
The quick ratio of Cars.com Inc has shown a declining trend over the past five years, starting at 0.75 in December 2020 and decreasing to 0.41 in December 2021, further dropping to 0.30 in December 2022, and then to 0.27 in December 2023. However, there was a slight improvement to 0.43 by December 2024.
The quick ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 indicates that the company may have difficulty meeting its short-term liabilities with its current assets, excluding inventory.
Based on the data provided, Cars.com Inc's decreasing quick ratio trend may indicate potential liquidity challenges in meeting its short-term obligations. The improvement in the quick ratio in December 2024 is positive, but further monitoring of the company's liquidity position is recommended to assess its ability to handle short-term financial obligations effectively.
Peer comparison
Dec 31, 2024