Cars.com Inc (CARS)

Financial leverage 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
Total assets	US$ in thousands	1,111,860	1,118,510	1,120,540	1,143,130	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
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
Financial leverage ratio		2.17	2.23	2.26	2.37	2.38	2.28	2.27	2.60	2.67	2.79	2.69	2.70	2.74	2.72	2.86	2.99	3.16	3.31	3.28	3.61

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 been decreasing steadily over the past few years, indicating a decreasing reliance on debt to finance its operations. As of December 31, 2024, the financial leverage ratio stood at 2.17, which suggests that the company's level of debt relative to its equity has decreased compared to previous periods. This trend may indicate improved financial stability and reduced financial risk for the company. Furthermore, the decreasing trend in the financial leverage ratio could signal that Cars.com Inc has been effectively managing its debt levels and optimizing its capital structure for greater efficiency and profitability. Investors and stakeholders may view this trend positively as it indicates a more conservative approach to managing the company's financial obligations.