Cars.com Inc (CARS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| Debt-to-capital 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 |
| 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 |
| 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 |
Cars.com Inc has consistently maintained a strong solvency position, as evidenced by its consistently low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio. These ratios have remained at 0.00 throughout the reporting periods, indicating that the company's total debt is negligible compared to its total assets, capital, and equity.
Furthermore, the financial leverage ratio, which measures the company's level of financial leverage and indicates the proportion of debt in its capital structure, has been decreasing over the years. This trend suggests that Cars.com Inc has been effectively managing its debt levels and reducing its reliance on external financing.
Overall, the stable and low solvency ratios of Cars.com Inc reflect a healthy financial position and suggest that the company is well positioned to meet its financial obligations and withstand economic challenges in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Cars.com Inc fluctuated significantly over the reporting periods. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.
From March 31, 2020, to December 31, 2021, the company had negative interest coverage ratios, indicating a lack of earnings to cover interest expenses, which could raise concerns about the company's financial health and ability to service its debt. However, from March 31, 2022, the company started showing positive interest coverage ratios, indicating an improvement in its ability to meet its interest payments.
Throughout 2022 and 2023, the interest coverage ratios remained relatively stable between 1.15 and 2.00, suggesting that the company's operating income was sufficient to cover its interest expenses. This stability may indicate a better financial position and reduced financial risk.
Overall, the improving trend in interest coverage ratios from negative values to positive values, reaching a peak in 2023, signals a positive shift in the company's financial performance and ability to manage its debt obligations effectively. Investors and creditors may find this improvement encouraging as it indicates a stronger financial position for Cars.com Inc.