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.