Cars.com Inc (CARS)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 719,152 718,327 713,009 702,291 689,183 677,778 668,040 662,737 653,876 643,980 635,938 628,595 623,683 618,386 606,225 552,704 547,503 546,682 554,380 600,578
Property, plant and equipment US$ in thousands — — — — — 44,005 45,201 45,692 45,218 45,403 43,529 42,949 43,005 46,194 46,450 43,479 41,323 41,072 40,674 60,282
Fixed asset turnover — — — — — 15.40 14.78 14.50 14.46 14.18 14.61 14.64 14.50 13.39 13.05 12.71 13.25 13.31 13.63 9.96

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $719,152K ÷ $—K
= —

To analyze Cars.com Inc's fixed asset turnover, we calculated the ratio of net sales to average fixed assets for each quarter based on the provided data.

The trend in fixed asset turnover for Cars.com Inc shows a consistent improvement from the first quarter of 2020 to the end of the third quarter of 2023. The ratio increased steadily from 9.96 in March 2020 to 15.40 in September 2023, indicating that the company generated more sales relative to its investment in fixed assets during this period.

However, we observed a slight decline in fixed asset turnover in the fourth quarter of 2023 and further in early 2024, where the ratio remained constant at 14.50 and then started to decrease. This could suggest a potential slowdown in generating sales from the company's fixed assets or an increase in the value of fixed assets, impacting the turnover ratio.

It is important for the company to monitor this trend closely as a declining fixed asset turnover may indicate inefficiencies in asset utilization or a need for further investment in assets to support revenue growth. Further analysis of the reasons behind the fluctuations in fixed asset turnover will be crucial for management to make informed decisions regarding asset management and operational efficiency.