CarGurus (CARG)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 20,972 | 31,104 | 84,387 | 109,244 | 77,553 |
| Total assets | US$ in thousands | 824,536 | 918,927 | 927,102 | 931,574 | 502,298 |
| ROA | 2.54% | 3.38% | 9.10% | 11.73% | 15.44% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $20,972K ÷ $824,536K
= 2.54%
CarGurus' return on assets (ROA) has shown a declining trend over the years, starting at 15.44% on December 31, 2020, and decreasing to 2.54% by the end of December 31, 2024. This indicates that the company's ability to generate profits from its assets has been decreasing over time, which may raise concerns about its efficiency in asset utilization. A decreasing ROA could suggest challenges in managing assets effectively or declining profitability relative to the size of the asset base. Investors and analysts may scrutinize the reasons behind this trend to assess the company's operational performance and financial health.
Peer comparison
Dec 31, 2024