Cars.com Inc (CARS)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	460,119	458,249	457,383	576,143	611,277
Total assets	US$ in thousands	1,172,450	1,024,870	1,007,200	1,075,710	2,027,990
Debt-to-assets ratio		0.39	0.45	0.45	0.54	0.30

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $460,119K ÷ $1,172,450K
= 0.39

The debt-to-assets ratio for Cars.com has fluctuated over the past five years. It decreased from 0.54 in 2020 to 0.32 in 2019, indicating a significant improvement in the company's ability to use its assets to cover its debt obligations. However, the ratio increased in subsequent years, reaching 0.41 in 2023.

A debt-to-assets ratio of 0.41 in 2023 suggests that approximately 41% of Cars.com's assets are financed through debt. While this ratio indicates that the company relies moderately on debt to fund its operations and investments, it is essential to monitor changes in the ratio over time to assess the company's financial leverage and risk profile. Overall, the trend in the debt-to-assets ratio for Cars.com highlights the importance of managing debt levels effectively to maintain financial stability and sustainability.