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.
Peer comparison
Dec 31, 2023