Cars.com Inc (CARS)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 245,552 | 234,690 | 201,125 | -752,013 | -293,636 |
| Revenue | US$ in thousands | 658,830 | 618,556 | 584,954 | 509,647 | 575,908 |
| Gross profit margin | 37.27% | 37.94% | 34.38% | -147.56% | -50.99% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $245,552K ÷ $658,830K
= 37.27%
Cars.com's gross profit margin has shown relatively stable performance over the past five years, ranging from a high of 83.59% in 2019 to a low of 81.45% in 2020. In the most recent year, ending Dec 31, 2023, the gross profit margin stands at 82.27%, indicating a slight decrease from the previous year's figure of 82.42%.
The consistently high gross profit margin suggests that Cars.com has been effectively managing its production and sales costs relative to its revenue. This is a positive sign of operational efficiency and effective cost control within the company's business operations. However, the slight decline in the margin in 2023 may warrant further investigation into potential factors driving this decrease, such as changes in pricing strategies, cost structures, or competitive pressures.
Overall, Cars.com's gross profit margin performance indicates a strong foundation in managing costs and generating profits from its core operations, but ongoing monitoring and analysis are recommended to ensure sustained financial health and profitability in the future.
Peer comparison
Dec 31, 2023