CarGurus (CARG)
Return on equity (ROE)
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 stockholders’ equity | US$ in thousands | 541,689 | 483,473 | 452,073 | 568,362 | 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 |
ROE | 3.87% | -8.86% | -9.52% | 7.41% | 5.30% | 10.51% | 10.26% | 10.57% | 11.11% | 14.95% | 20.96% | 22.97% | 20.59% | 17.30% | 19.18% | 16.59% | 20.76% | 19.38% | 14.66% | 15.20% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $20,972K ÷ $541,689K
= 3.87%
CarGurus' return on equity (ROE) has exhibited variability over the period from March 31, 2020, to December 31, 2024. The ROE started at 15.20% in March 2020 and showed fluctuations in subsequent quarters, reaching a peak of 22.97% in March 2022. However, there was a notable decline in the ROE to 5.30% by December 2023.
The ROE continued to fluctuate and turned negative in the second quarter of 2024, with values of -9.52% and -8.86% in June and September 2024, respectively. However, there was a recovery by the end of the year, with the ROE improving to 3.87% in December 2024.
Overall, the downward trend in ROE from 2022 to 2024, with instances of negative ROE, indicates challenges in generating sufficient profits relative to the shareholders' equity. This trend suggests potential issues with profitability and efficiency in utilizing the company's equity to generate returns for shareholders. Analysis of the factors impacting profitability and efficiency may be necessary to address the declining ROE and improve the company's financial performance.
Peer comparison
Dec 31, 2024