CarGurus (CARG)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	20,972	-42,814	-43,023	42,111	32,676	75,374	71,896	73,544	81,588	86,427	96,802	106,793	106,434	101,965	105,329	84,408	77,553	65,561	43,382	42,258
Total assets	US$ in thousands	824,536	778,161	753,331	870,803	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
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $20,972K ÷ $824,536K
= 2.54%

CarGurus' return on assets (ROA) has displayed fluctuations over the periods provided. The ROA started at a solid 10.40% on March 31, 2020, and gradually increased to reach its peak at 15.44% by December 31, 2020. However, the ROA witnessed a decline in the following periods, dropping to 9.59% by June 30, 2022.

There was a significant drop in ROA to -5.71% by June 30, 2024, indicating a potential sign of inefficiency in asset utilization. Subsequently, CarGurus managed to recover slightly, achieving a positive ROA of 2.54% by December 31, 2024.

Overall, the trend in ROA suggests that CarGurus has experienced periods of strong asset utilization efficiency, with peaks in late 2020, followed by periods of decreased efficiency, as evidenced by the negative ROA figures in mid-2024. Further analysis of the company's financial and operational strategies may be needed to understand the drivers behind these fluctuations and to potentially improve future ROA performance.