Cars.com Inc (CARS)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 1,111,860 1,172,450 1,024,870 1,007,200 1,075,710
Total stockholders’ equity US$ in thousands 511,485 492,108 384,430 366,934 340,176
Financial leverage ratio 2.17 2.38 2.67 2.74 3.16

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,111,860K ÷ $511,485K
= 2.17

The financial leverage ratio of Cars.com Inc has shown a declining trend over the years, indicating a decreasing reliance on debt to finance its operations. From 3.16 in December 31, 2020 to 2.17 in December 31, 2024, the company has gradually reduced its debt levels relative to its equity. This decreasing trend may suggest a stronger financial position and potentially lower financial risk for the company. However, it is important to consider the reasons behind this trend and evaluate the overall financial health and strategy of Cars.com Inc.