Cars.com Inc (CARS)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	492,108	384,430	398,020	368,190	1,141,070
Debt-to-equity ratio		0.93	1.19	1.15	1.56	0.54

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $460,119K ÷ $492,108K
= 0.93

The debt-to-equity ratio of Cars.com has exhibited fluctuations over the past five years. In 2020, the ratio was the highest at 1.72, indicating that the company had a higher level of debt relative to its equity. This could suggest higher financial risk associated with the firm during that period.

However, in subsequent years, there has been a decreasing trend in the debt-to-equity ratio, which may suggest that the company has been reducing its reliance on debt to finance its operations. By the end of 2023, the ratio stood at 0.98, implying that the company had a lower level of debt in comparison to its equity.

Overall, this decreasing trend in the debt-to-equity ratio could indicate improved financial stability and potentially lower financial risk for Cars.com as the company has gradually reduced its debt levels relative to equity over the years.