Cars.com Inc (CARS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 82.71% | 67.82% | 82.42% | 81.69% | 81.45% |
| Operating profit margin | 7.44% | 7.85% | 10.10% | 1.24% | 1.34% |
| Pretax margin | 8.60% | 2.63% | 3.45% | 1.24% | -171.03% |
| Net profit margin | 6.70% | 17.19% | 2.63% | 1.24% | -149.24% |
Cars.com Inc's Gross Profit Margin has shown a general increasing trend over the years, starting at 81.45% in December 2020 and reaching 82.71% by December 2024. This indicates that the company is effectively managing its production costs and generating a higher percentage of revenue as gross profit.
In terms of Operating Profit Margin, there was some fluctuation with a significant increase from 1.34% in December 2020 to 10.10% in December 2022, followed by a slight decrease to 7.44% in December 2024. Despite the fluctuations, the company's operating efficiency improved notably in 2022, but declined slightly thereafter.
Pretax Margin also showed improvement over the years, with a noteworthy recovery from negative margins in 2020 to positive figures in subsequent years. The margin increased steadily from 1.24% in 2021 to 8.60% in 2024, indicating better financial performance and management effectiveness in generating profits before taxes.
Net Profit Margin, a key indicator of overall profitability, displayed substantial improvement from negative margins in 2020 to 17.19% in 2023, before decreasing slightly to 6.70% in 2024. This suggests that the company's net income as a percentage of revenue has been increasing overall, with a particularly strong performance in 2023.
Overall, the profitability ratios demonstrate Cars.com Inc's ability to efficiently generate profits at various levels of its operations over the analyzed period, with positive trends in gross, operating, pretax, and net profit margins, albeit with some fluctuations in specific years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.81% | 4.62% | 6.44% | 0.77% | 0.68% |
| Return on assets (ROA) | 4.33% | 10.10% | 1.68% | 0.77% | -75.96% |
| Return on total capital | 5.80% | 10.27% | 17.44% | 2.10% | -267.41% |
| Return on equity (ROE) | 9.42% | 24.07% | 4.48% | 2.10% | -240.21% |
Cars.com Inc's profitability ratios have shown varying performances over the years.
- Operating Return on Assets (Operating ROA) has increased from 0.68% in 2020 to 4.81% in 2024, indicating an improvement in the company's ability to generate operating income from its assets.
- Return on Assets (ROA) also experienced fluctuations, with a significant negative return of -75.96% in 2020, but then improved to 4.33% in 2024. This ratio demonstrates the company's ability to generate profits relative to its total assets.
- Return on Total Capital has shown an increasing trend, starting at a negative figure of -267.41% in 2020 and reaching 5.80% in 2024. This ratio reflects the return generated on the total invested capital, including both debt and equity.
- Return on Equity (ROE) has fluctuated over the years, from a substantial negative return of -240.21% in 2020 to 9.42% in 2024. ROE indicates the return generated on the shareholders' equity investment in the company.
Overall, Cars.com Inc's profitability ratios have shown improvements in recent years, with positive trends in operating efficiency and returns on assets, capital, and equity.