CarGurus (CARG)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	616,852	716,994	700,854	695,808	734,609	577,931	461,835	464,865	516,841	589,256	549,181	508,655	373,586	338,259	295,855	277,968	256,855	237,102	222,386	211,009
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $36,942K ÷ $616,852K
= 5.99%

CarGurus Inc's return on equity (ROE) has shown some fluctuations over the past eight quarters. In Q4 2023, the ROE was 5.04%, which is significantly lower compared to the previous three quarters where the ROE ranged from 29.86% to 42.63%. This sudden drop in the ROE may indicate a decrease in the company's profitability or efficiency in generating returns for its shareholders.

Looking back at the trend over the past year, there has been an improvement in the ROE from negative values in Q2 and Q3 of 2022 to positive values in the following quarters. However, the ROE has been volatile, suggesting potential instability in the company's financial performance.

It is important for investors and stakeholders to closely monitor CarGurus Inc's performance indicators and financial metrics to assess the company's ability to generate returns on shareholders' equity effectively and consistently. Further analysis and investigation into the factors influencing the ROE fluctuations are recommended to gain a deeper understanding of the company's financial health and prospects.