CarGurus (CARG)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	918,927	927,102	931,574	502,298	393,623
Operating ROA		3.55%	11.70%	15.92%	19.46%	8.72%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $32,627K ÷ $918,927K
= 3.55%

CarGurus Inc's operating return on assets (operating ROA) has exhibited fluctuating trends over the past five years. The operating ROA decreased from 19.46% in 2020 to 15.92% in 2021, indicating a decline in the company's ability to generate operating profits from its assets. This downward trend continued in 2022 with a further decrease to 11.70%. However, in 2023, there was a significant drop in the operating ROA to 3.55%, suggesting a substantial decline in the company's efficiency in using its assets to generate operating income.

Overall, the decreasing trend in operating ROA over the years may indicate potential operational inefficiencies or challenges faced by CarGurus Inc in managing its assets effectively to generate profits. Further analysis of the company's operational performance and asset utilization is recommended to identify the underlying factors contributing to the decline in operating ROA and to implement strategies to improve the company's profitability in the future.