CarGurus (CARG)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 36,942 | 84,387 | 109,244 | 77,553 | 42,146 |
| Revenue | US$ in thousands | 916,367 | 1,656,550 | 951,443 | 551,428 | 589,606 |
| Net profit margin | 4.03% | 5.09% | 11.48% | 14.06% | 7.15% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $36,942K ÷ $916,367K
= 4.03%
Net profit margin is a key financial ratio that indicates the percentage of each dollar of revenue that translates into net income after all expenses are deducted. Looking at CarGurus Inc's net profit margin over the past five years, we observe significant fluctuations in profitability.
In 2023, the net profit margin was 3.40%, indicating that the company generated a modest profit of $0.034 for every dollar of revenue. This represents a notable decrease from the previous year's level of 11.71%, suggesting a decline in profitability.
The negative net profit margin of -0.02% in 2021 indicates that the company incurred a loss, failing to generate positive earnings relative to its revenue. However, there was a significant improvement in 2022, with the net profit margin rebounding to 14.06%, signaling a strong profitability recovery.
In 2020, CarGurus Inc achieved a robust net profit margin of 7.16%, demonstrating its ability to efficiently control costs and generate profit. This performance was relatively consistent with the net profit margin of 7.16% in 2019, indicating stable profitability over the period.
Overall, CarGurus Inc's net profit margin has shown volatility, with fluctuations reflecting changes in the company's financial performance and efficiency in managing expenses relative to revenue. Further analysis of the underlying factors driving these fluctuations is necessary to understand the company's financial health and future prospects.
Peer comparison
Dec 31, 2023