CarGurus (CARG)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 82.06% | 79.08% | 78.07% | 74.45% | 71.26% | 63.45% | 51.22% | 43.30% | 39.73% | 41.01% | 47.36% | 57.15% | 69.10% | 80.90% | 86.11% | 90.24% | 92.26% | 92.51% | 92.61% | 93.43% |
| Operating profit margin | 15.75% | 7.35% | 6.96% | 4.99% | 3.57% | 8.64% | 7.60% | 6.58% | 6.55% | 7.19% | 8.92% | 12.32% | 15.58% | 18.05% | 20.53% | 19.73% | 17.73% | 13.96% | 7.85% | 6.36% |
| Pretax margin | 2.76% | -5.30% | -5.69% | 7.01% | 5.65% | 10.29% | 8.63% | 7.09% | 6.73% | 7.22% | 8.96% | 12.38% | 15.70% | 18.10% | 20.60% | 19.88% | 17.97% | 14.37% | 8.41% | 6.93% |
| Net profit margin | 2.34% | -4.82% | -4.91% | 4.69% | 3.57% | 7.71% | 6.07% | 5.05% | 4.93% | 5.06% | 6.44% | 8.82% | 11.19% | 13.35% | 15.31% | 14.94% | 14.06% | 11.75% | 7.73% | 6.91% |
CarGurus' profitability ratios have shown fluctuations over the years. The gross profit margin decreased from a high of 93.43% in March 2020 to a low of 39.73% in December 2022 before gradually recovering to 82.06% by December 2024. This shows a significant decline in the company's efficiency in generating profits from sales.
The operating profit margin followed a similar trend, peaking at 20.53% in June 2021 before dropping to 3.57% by December 2023. The margin recovered to 15.75% by December 2024 but displayed volatility during the period under review.
The pre-tax margin also exhibited variability, with a low of -5.69% in June 2024. This suggests that CarGurus faced challenges in maintaining profitability before experiencing a positive trend by the end of the period.
Likewise, the net profit margin displayed fluctuations, reaching a low of -4.91% in June 2024. The company struggled with profitability before showing signs of improvement by December 2024.
Overall, the analysis of CarGurus' profitability ratios indicates a mixed performance characterized by fluctuations and challenges in maintaining consistent profitability levels.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 2.54% | -5.50% | -5.71% | 4.84% | 3.56% | 7.19% | 6.91% | 6.99% | 8.80% | 8.79% | 9.59% | 11.29% | 11.43% | 12.44% | 13.43% | 11.73% | 15.44% | 14.24% | 10.65% | 10.40% |
| Return on total capital | 27.31% | 14.31% | 12.12% | 6.29% | 3.37% | 11.00% | 12.08% | 13.02% | 14.04% | 19.92% | 27.31% | 30.23% | 26.95% | 21.47% | 24.26% | 20.98% | 25.73% | 23.04% | 14.89% | 14.00% |
| Return on equity (ROE) | 3.87% | -8.86% | -9.52% | 7.41% | 5.30% | 10.51% | 10.26% | 10.57% | 11.11% | 14.95% | 20.96% | 22.97% | 20.59% | 17.30% | 19.18% | 16.59% | 20.76% | 19.38% | 14.66% | 15.20% |
CarGurus' profitability ratios exhibit fluctuations over the periods mentioned. The Operating return on assets (Operating ROA) shows a decreasing trend from March 2023 to December 2024. The Return on assets (ROA) also demonstrates a decline over the same period, improving briefly in June 2024 before dropping in September 2024.
The Return on total capital fluctuates significantly, reaching a peak in March 2022 and then decreasing until September 2023, before showing an upward trend again. Return on equity (ROE) follows a similar pattern, peaking in March 2022 and declining in subsequent periods, with negative values in June and September 2024.
Overall, the profitability ratios for CarGurus indicate a mix of performance trends, with periods of growth as well as challenges. It would be important to further analyze the underlying factors contributing to these changes in profitability to make informed decisions about the company's financial performance.