CarGurus (CARG)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 824,536 | 918,927 | 927,102 | 931,574 | 502,298 |
| Operating ROA | 1.63% | 3.55% | 11.70% | 15.92% | 19.46% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $13,412K ÷ $824,536K
= 1.63%
The operating return on assets (ROA) for CarGurus has exhibited a declining trend over the past five years. Starting at 19.46% on December 31, 2020, it decreased to 15.92% by December 31, 2021, showing a noticeable drop. This trend continued as the operating ROA further declined to 11.70% by December 31, 2022, and then sharply fell to 3.55% by December 31, 2023. Finally, by December 31, 2024, the operating ROA stood at 1.63%, indicating a significant decrease compared to the initial value.
The decreasing trend in operating ROA suggests that CarGurus may be facing challenges in generating operating profits relative to its asset base. It is crucial for the company to closely monitor and address the factors contributing to this decline to improve operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024