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.