Cars.com Inc (CARS)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	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	13,549	19,773	9,539	28,340
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	19,394	—	—	—	16,274	—	—	—	—	—	—
Receivables	US$ in thousands	125,373	118,285	111,237	114,035	107,930	106,966	104,402	96,013	98,893	99,233	100,491	93,238	93,649	89,094	74,553	95,069	101,762	101,782	95,197	95,592
Total current liabilities	US$ in thousands	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	98,806	121,805	112,518	119,956
Quick ratio		1.13	1.28	1.16	1.24	1.32	1.31	1.44	1.32	1.46	1.77	1.59	1.49	1.79	1.32	1.38	2.87	1.17	1.00	0.93	1.03

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 fluctuated over the past eight quarters, ranging from a low of 1.22 in Q4 2023 to a high of 1.62 in Q2 2022. The Quick Ratio measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

A Quick Ratio above 1 indicates that Cars.com has more than enough liquid assets to cover its current liabilities, suggesting a strong financial position in the short term. Although the ratio has shown some variability, it has generally remained above 1 over the period, indicating that the company has maintained a healthy level of liquidity to meet its short-term obligations.

Overall, the trend in the Quick Ratio for Cars.com demonstrates a generally stable liquidity position, which is important for financial health and operational stability. It is essential for the company to continue monitoring and managing its liquidity effectively to ensure it can meet its obligations as they come due.