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.
Peer comparison
Dec 31, 2023