Cars.com Inc (CARS)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 511,485 | 502,425 | 496,891 | 481,450 | 492,108 | 483,010 | 477,457 | 384,987 | 384,430 | 376,527 | 391,388 | 396,087 | 366,934 | 366,560 | 357,442 | 346,002 | 340,176 | 322,373 | 328,781 | 347,890 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $511,485K
= 0.00
The debt-to-equity ratio for Cars.com Inc has consistently been 0.00 for each reporting period up to December 31, 2024, based on the provided data. A debt-to-equity ratio of 0.00 indicates that the company has no debt or very minimal debt in relation to its equity. This could suggest that the company relies more on equity financing rather than debt financing to fund its operations and investments.
Having a low or zero debt-to-equity ratio can be viewed positively as it indicates financial stability and lower financial risk. It implies that the company may be in a strong financial position with a solid equity base to support its operations and growth without taking on significant debt obligations. It also implies that the company may have a lower risk of financial distress due to debt repayment obligations.
However, it's important to note that a zero debt-to-equity ratio may not always be the most optimal capital structure for a company, as some level of debt can have tax benefits and leverage opportunities. Companies often aim for a balanced mix of debt and equity to optimize their cost of capital and maximize shareholder value over the long term.
In conclusion, based on the consistent 0.00 debt-to-equity ratio, Cars.com Inc appears to have a conservative financing structure with little to no debt, which could be a strategic choice to maintain a strong financial position and lower financial risk.
Peer comparison
Dec 31, 2024