Cars.com Inc (CARS)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 719,152 | 689,183 | 653,876 | 623,683 | 547,503 |
| Total assets | US$ in thousands | 1,111,860 | 1,172,450 | 1,024,870 | 1,007,200 | 1,075,710 |
| Total asset turnover | 0.65 | 0.59 | 0.64 | 0.62 | 0.51 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $719,152K ÷ $1,111,860K
= 0.65
Total asset turnover is a key financial ratio that measures a company's ability to generate revenue from its assets. In the case of Cars.com Inc, the total asset turnover has shown an improving trend over the years, increasing from 0.51 in 2020 to 0.65 in 2024. This indicates that the company is becoming more efficient in utilizing its assets to generate sales.
A total asset turnover ratio of less than 1 suggests that the company is not generating as much revenue relative to its total assets. However, the increasing trend for Cars.com Inc signifies an improvement in its asset utilization efficiency.
A higher total asset turnover ratio generally indicates better operational efficiency and financial performance. Therefore, the rising trend in Cars.com Inc's total asset turnover ratio reflects positively on the company's ability to efficiently generate sales from its asset base. It suggests that the company is managing its assets effectively to drive revenue growth.
Peer comparison
Dec 31, 2024