CarGurus (CARG)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 32,627 | 108,478 | 148,268 | 97,756 | 34,322 |
| Revenue | US$ in thousands | 916,367 | 1,656,550 | 951,443 | 551,428 | 589,606 |
| Operating profit margin | 3.56% | 6.55% | 15.58% | 17.73% | 5.82% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $32,627K ÷ $916,367K
= 3.56%
CarGurus Inc's operating profit margin experienced a noticeable decline in profitability over the period from 2019 to 2023. The operating profit margin stood at 5.83% in 2019, subsequently increasing to 17.73% in 2020, reflecting a strong performance. However, there was a significant drop in profitability in 2021, with the operating profit margin decreasing to 15.58%. This downward trend continued in the following years, with the operating profit margin dwindling to 6.55% in 2022 and further decreasing to 3.57% in 2023.
The declining operating profit margin suggests that CarGurus Inc faced challenges in managing its operating expenses relative to its revenue generation. It is important for the company to closely monitor and control its costs to improve profitability and efficiency in its operations. Additionally, CarGurus Inc may need to reevaluate its pricing strategies, cost structures, and operational efficiencies to enhance its operating profit margin and ensure sustainable growth in the future.
Peer comparison
Dec 31, 2023