CarGurus (CARG)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	36,942	84,387	109,244	77,553	42,146
Total assets	US$ in thousands	918,927	927,102	931,574	502,298	393,623
ROA		4.02%	9.10%	11.73%	15.44%	10.71%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $36,942K ÷ $918,927K
= 4.02%

The return on assets (ROA) for CarGurus Inc has varied significantly over the past five years. In 2019, the ROA was at 10.71%, indicating that the company generated a return of 10.71 cents for every dollar of assets it held. This was a decent performance.

In 2020, the ROA increased to 15.44%, showing an improvement in the company's efficiency in utilizing its assets to generate profits. The return further peaked in 2022 at 20.90%, reflecting a robust performance in that year.

However, there was a sharp decline in 2021, with the ROA dropping to -0.02%. A negative ROA suggests that the company experienced a loss relative to its assets during that year, which could be due to various factors such as increased expenses or a decrease in revenue.

In 2023, the ROA rebounded to 3.38%, indicating a partial recovery compared to the negative ROA in the previous year. Overall, the trend in CarGurus Inc's ROA highlights fluctuations in the company's ability to generate profits from its assets, with notable improvements in certain years and challenges in others.