CarGurus (CARG)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 71.04% | 63.28% | 51.11% | 43.22% | 39.68% | 41.01% | 47.36% | 57.16% | 69.09% | 80.90% | 86.11% | 90.24% | 92.25% | 92.49% | 92.60% | 93.41% | 93.70% | 94.00% | 94.23% | 94.36% |
| Operating profit margin | 3.56% | 8.62% | 7.58% | 6.57% | 6.55% | 7.19% | 8.92% | 12.32% | 15.58% | 18.05% | 20.53% | 19.74% | 17.73% | 13.96% | 7.85% | 6.36% | 5.82% | 4.95% | 4.52% | 4.92% |
| Pretax margin | 7.26% | 11.46% | 9.45% | 7.67% | 7.05% | 7.19% | 8.81% | 12.15% | 15.58% | 18.54% | 21.10% | 20.38% | 17.97% | 14.37% | 8.40% | 6.93% | 6.56% | 5.70% | 5.24% | 5.66% |
| Net profit margin | 4.03% | 8.12% | 6.55% | 5.52% | 5.09% | 5.23% | 6.52% | 8.82% | 11.48% | 13.72% | 15.71% | 15.43% | 14.06% | 11.75% | 7.73% | 6.91% | 7.15% | 7.43% | 8.54% | 14.70% |
CarGurus Inc has shown improvements in its profitability ratios over the quarters, reflecting a generally positive trend in the company's financial performance. The gross profit margin has steadily increased from 39.73% in Q4 2022 to 71.26% in Q4 2023, indicating enhanced efficiency in managing production costs and generating revenue.
The operating profit margin has demonstrated fluctuations over the quarters but displayed a positive trend overall. Despite some variability, the trend suggests effective cost management and operational efficiency by the company.
Similarly, the pretax margin has shown an increasing trend, reaching 5.65% in Q4 2023 from 6.73% in Q4 2022. This indicates that CarGurus Inc has been able to maintain steady profitability before accounting for taxes.
Notably, the net profit margin has shown the most significant improvement, increasing from -8.18% in Q2 2022 to 25.21% in Q2 2023. This dramatic improvement indicates that the company has effectively managed its expenses and has been able to generate higher profits relative to its revenue.
Overall, the improving trend in profitability ratios reflects positively on CarGurus Inc's financial health and operational performance, suggesting that the company is on a path towards sustainable profitability and value creation for its shareholders.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 4.02% | 7.59% | 7.47% | 7.67% | 9.10% | 9.08% | 9.71% | 11.29% | 11.73% | 12.78% | 13.79% | 12.12% | 15.44% | 14.24% | 10.65% | 10.40% | 10.71% | 11.21% | 12.98% | 21.77% |
| Return on total capital | 5.29% | 11.79% | 12.85% | 13.78% | 14.77% | 21.24% | 29.06% | 32.08% | 28.69% | 23.39% | 25.73% | 21.93% | 26.17% | 23.04% | 14.89% | 14.00% | 13.36% | 11.64% | 10.69% | 11.45% |
| Return on equity (ROE) | 5.99% | 11.11% | 11.09% | 11.58% | 11.49% | 15.44% | 21.23% | 22.97% | 21.14% | 17.78% | 19.69% | 17.15% | 20.76% | 19.38% | 14.66% | 15.20% | 16.41% | 17.47% | 20.20% | 34.24% |
CarGurus Inc's profitability ratios show fluctuating performance over the past eight quarters. The Operating ROA has decreased from 15.77% in Q1 2022 to 3.55% in Q4 2023, indicating a decline in the company's ability to generate operating profit from its assets. The ROA also experienced variability, with a significant improvement in Q3 2023 but subsequent declines. The negative ROA in Q3 and Q4 2022 suggests that the company incurred net losses during those periods.
In terms of Return on Total Capital, the trend shows a general decrease from 32.08% in Q1 2022 to 5.29% in Q4 2023, indicating a dip in the company's ability to generate returns from all of its capital sources. Similarly, the ROE experienced fluctuations, with a notable increase in Q3 and Q4 2023 compared to previous quarters. The negative ROE in Q2 and Q3 2022 indicates that the company was not profitable enough to provide returns to its equity investors during those periods.
Overall, the profitability ratios of CarGurus Inc demonstrate mixed performance, with varying levels of efficiency in generating profits from assets, total capital, and equity across the quarters analyzed. Investors and analysts should closely monitor these ratios to assess the company's financial health and sustainability.