CarGurus (CARG)

Return on assets (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
Net income (ttm)	US$ in thousands	36,942	79,640	77,738	80,609	84,387	89,226	98,025	106,793	109,244	104,775	108,139	87,218	77,553	65,561	43,382	42,258	42,146	41,425	44,923	72,259
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
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%

December 31, 2023 calculation

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

CarGurus Inc's return on assets (ROA) has been fluctuating over the past eight quarters. The ROA for Q1 2022 was -8.95%, indicating that the company had a negative return on its assets during that period. However, there was a significant improvement in the subsequent quarters, with ROA increasing to -4.60% in Q2 2022 and further reaching positive territory in Q3 2022 at 20.90%.

The trend continued positively in the following quarters, with ROA peaking in Q2 2023 at 28.72% and maintaining a relatively high level in Q3 2023 at 20.41%. However, there was a decline in Q4 2023, with ROA decreasing to 3.38%.

Overall, CarGurus Inc's ROA has shown volatility, with periods of negative returns followed by substantial improvements. It would be important for stakeholders to monitor the company's asset management efficiency closely to ensure sustainable profitability in the future.