Cars.com Inc (CARS)

Debt-to-assets 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
Long-term debt	US$ in thousands	460,119	429,679	434,210	438,739	458,249	482,740	495,968	499,182	457,383	470,520	502,357	524,260	576,143	558,720	609,066	763,361	611,277	630,913	644,046	652,178
Total assets	US$ in thousands	1,172,450	1,103,190	1,085,540	1,002,220	1,024,870	1,050,170	1,051,460	1,069,220	1,007,200	998,127	1,020,880	1,035,810	1,075,710	1,068,450	1,077,640	1,255,920	2,027,990	2,059,880	2,527,390	2,580,270
Debt-to-assets ratio		0.39	0.39	0.40	0.44	0.45	0.46	0.47	0.47	0.45	0.47	0.49	0.51	0.54	0.52	0.57	0.61	0.30	0.31	0.25	0.25

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 shown a gradual decrease over the past two years, from 0.48 in Q1 2022 to 0.41 in Q4 2023. This implies that the company has been reducing its reliance on debt to finance its assets, which can be a positive sign for investors and creditors. A lower debt-to-assets ratio indicates that the company has a stronger financial position and is less vulnerable to default risk.

It is worth noting that the ratio hovered around 0.48 in the first half of 2022 before starting to decline. The decreasing trend suggests that Cars.com has been managing its debt levels effectively and improving its asset utilization. However, the ratio increased slightly in Q2 and Q1 2023, which could indicate a temporary increase in debt relative to assets during that period.

Overall, the decreasing trend in the debt-to-assets ratio for Cars.com indicates a positive financial performance in terms of managing debt and utilizing assets efficiently. Investors and stakeholders may view this as a favorable indicator of the company's financial health and ability to meet its obligations.