CarGurus (CARG)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 20,972 | 31,104 | 84,387 | 109,244 | 77,553 |
| Revenue | US$ in thousands | 894,384 | 914,242 | 1,655,040 | 951,373 | 551,451 |
| Net profit margin | 2.34% | 3.40% | 5.10% | 11.48% | 14.06% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $20,972K ÷ $894,384K
= 2.34%
The net profit margin of CarGurus has experienced a decreasing trend over the years, declining from 14.06% in 2020 to 2.34% in 2024. This indicates that the company's profit as a percentage of its revenue has been shrinking steadily. A higher net profit margin is generally preferred as it signifies greater efficiency in managing costs and higher profitability. The decreasing trend in the net profit margin may suggest challenges in controlling expenses or generating sufficient revenue growth compared to costs. It would be important for CarGurus to closely monitor its cost structure and seek opportunities for revenue enhancement to improve its profitability and financial performance in the future.
Peer comparison
Dec 31, 2024