CarGurus (CARG)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 13,412 | 32,627 | 108,478 | 148,268 | 97,756 |
| Revenue | US$ in thousands | 894,384 | 914,242 | 1,655,040 | 951,373 | 551,451 |
| Operating profit margin | 1.50% | 3.57% | 6.55% | 15.58% | 17.73% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $13,412K ÷ $894,384K
= 1.50%
Based on the provided data, CarGurus' operating profit margin has experienced a declining trend over the past five years. Starting at a healthy 17.73% on December 31, 2020, the operating profit margin gradually decreased to 15.58% by December 31, 2021. The decline steepened over the subsequent years, falling to 6.55% by December 31, 2022, further dropping to 3.57% by December 31, 2023, and reaching a low of 1.50% by December 31, 2024.
This consistent downward trend in operating profit margin indicates that CarGurus may be facing challenges in maintaining profitability from its core operations. A shrinking operating profit margin could result from a variety of factors such as increasing operating expenses, pricing pressure, or inefficiencies in cost management. It suggests that the company may need to reassess its operational strategies and find ways to improve efficiency and control costs to enhance its profitability in the future.
Peer comparison
Dec 31, 2024