Cars.com Inc (CARS)
Interest coverage
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 67,295 | 65,073 | 42,922 | 42,606 | 50,530 | 65,289 | 61,385 | 67,569 | 58,642 | 37,800 | 43,362 | 43,632 | 46,976 | 58,811 | 65,800 | 32,921 | -897,828 | -907,097 | -1,372,974 | -1,355,137 |
Interest expense (ttm) | US$ in thousands | 32,197 | 32,712 | 32,461 | 32,502 | 32,425 | 32,613 | 33,337 | 34,234 | 35,320 | 36,245 | 37,266 | 38,058 | 38,729 | 40,989 | 42,246 | 40,331 | 37,856 | 34,014 | 30,947 | 30,734 |
Interest coverage | 2.09 | 1.99 | 1.32 | 1.31 | 1.56 | 2.00 | 1.84 | 1.97 | 1.66 | 1.04 | 1.16 | 1.15 | 1.21 | 1.43 | 1.56 | 0.82 | -23.72 | -26.67 | -44.37 | -44.09 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $67,295K ÷ $32,197K
= 2.09
The interest coverage ratio for Cars.com Inc has shown a significant improvement over the period from March 31, 2020, to December 31, 2024. At the beginning of the period, the company had a negative interest coverage indicating that its operating income was insufficient to cover its interest expenses. However, starting from March 31, 2021, the interest coverage turned positive and continued to increase gradually over the subsequent quarters.
The interest coverage ratio reached its lowest point at -44.09 in March 31, 2020, and improved steadily to reach a peak of 2.09 in December 31, 2024. This positive trend indicates that Cars.com Inc's operating income has consistently become more capable of covering its interest expenses.
Overall, the improving interest coverage ratio reflects positively on the company's ability to meet its interest obligations and suggests better financial health and stability for Cars.com Inc over the analyzed period.
Peer comparison
Dec 31, 2024