Cars.com Inc (CARS)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 54,116 | 58,992 | 64,573 | 67,624 | 66,036 | 50,287 | 42,462 | 42,732 | 48,338 | 60,173 | 67,162 | 34,283 | -887,327 | -898,518 | -1,365,297 | -1,347,069 | -446,060 | -426,896 | 49,151 | 72,704 |
| Interest expense (ttm) | US$ in thousands | 3,042 | 3,098 | 3,154 | 3,200 | 3,235 | 3,287 | 3,333 | 3,342 | 3,360 | 5,201 | 5,388 | 5,386 | 5,108 | 3,034 | 2,318 | 1,818 | 1,573 | 1,295 | 1,296 | 1,301 |
| Interest coverage | 17.79 | 19.04 | 20.47 | 21.13 | 20.41 | 15.30 | 12.74 | 12.79 | 14.39 | 11.57 | 12.47 | 6.37 | -173.71 | -296.15 | -589.00 | -740.96 | -283.57 | -329.65 | 37.93 | 55.88 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $54,116K ÷ $3,042K
= 17.79
The interest coverage ratio for Cars.com has fluctuated over the past eight quarters. It has shown a general increasing trend from Q1 2022 to Q2 2023, reaching a peak of 1.98 in Q1 2023 before slightly decreasing in the most recent quarter to 1.67. This indicates that the company's ability to cover its interest expenses with its operating income has improved over time, but there has been a slight decline in the most recent quarter. The average interest coverage ratio over this period is 1.61, suggesting that, on average, the company's operating income is able to cover its interest expenses 1.61 times. Overall, while the recent decrease in the interest coverage ratio warrants monitoring, the company has shown improvements in its ability to meet its interest obligations in recent quarters.
Peer comparison
Dec 31, 2023