CarGurus (CARG)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	140,887	65,344	61,005	44,852	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
Total assets	US$ in thousands	824,536	778,161	753,331	870,803	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
Operating ROA		17.09%	8.40%	8.10%	5.15%	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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $140,887K ÷ $824,536K
= 17.09%

CarGurus' operating return on assets (operating ROA) has fluctuated over the periods provided in the data. The operating ROA started at 9.57% as of March 31, 2020, showing a moderate level of return on assets generated from its operations. Subsequently, there was an upward trend in the operating ROA, reaching a peak of 19.46% by December 31, 2020.

From there, the operating ROA experienced some fluctuations but generally maintained a relatively high range, demonstrating the company's ability to efficiently generate earnings from its assets. However, there was a declining trend in the operating ROA starting from June 30, 2022, reaching a low of 3.55% by December 31, 2023.

The operating ROA then showed a slight recovery in the following periods, reaching 17.09% by December 31, 2024. This improvement may indicate that CarGurus has taken measures to enhance the efficiency of its asset utilization and operational performance.

Overall, the analysis of CarGurus' operating ROA highlights the company's varying ability to generate profits from its assets over time, reflecting changes in operational efficiency and profitability in the business.