CarGurus (CARG)

Operating return on assets (Operating ROA)

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Operating income (ttm) US$ in thousands 32,627 84,513 90,074 95,878 108,478 122,781 134,201 149,136 148,268 137,805 141,296 111,528 97,756 77,930 44,067 38,906 34,322 27,589 23,762 24,167
Total assets US$ in thousands 918,927 1,048,720 1,040,320 1,051,580 927,102 982,855 1,009,710 945,805 931,574 819,917 784,205 719,393 502,298 460,551 407,436 406,438 393,623 369,383 346,161 331,927
Operating ROA 3.55% 8.06% 8.66% 9.12% 11.70% 12.49% 13.29% 15.77% 15.92% 16.81% 18.02% 15.50% 19.46% 16.92% 10.82% 9.57% 8.72% 7.47% 6.86% 7.28%

December 31, 2023 calculation

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

The operating return on assets (operating ROA) for CarGurus Inc has been fluctuating over the past eight quarters, ranging from a high of 15.77% in Q1 2022 to a low of 3.55% in Q4 2023. The trend shows a gradual decline in operating ROA over this period, indicating a decrease in the company's ability to generate profits from its assets. This could be a cause for concern as it suggests a potential inefficiency in the utilization of assets to generate operating income. Further analysis of the company's operational efficiency, asset management, and profitability drivers would be beneficial to address the declining trend in operating ROA.