Cars.com Inc (CARS)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 48,188 | 118,442 | 17,206 | 7,719 | -817,120 |
| Revenue | US$ in thousands | 719,152 | 689,183 | 653,876 | 623,683 | 547,503 |
| Net profit margin | 6.70% | 17.19% | 2.63% | 1.24% | -149.24% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $48,188K ÷ $719,152K
= 6.70%
Cars.com Inc's net profit margin has shown a significant improvement over the years, starting from a negative margin of -149.24% in December 31, 2020, which indicates a loss-making scenario. However, by December 31, 2021, the company turned around to achieve a positive net profit margin of 1.24%, indicating that for every dollar of revenue generated, the company retained approximately 1.24 cents as profit.
The trend continued to improve in subsequent years, with the net profit margin increasing to 2.63% by December 31, 2022, reflecting a more efficient cost management and higher profitability. The company made a significant leap in profitability by December 31, 2023, when the net profit margin surged to 17.19%, showcasing strong earnings relative to its revenue.
However, there was a slight dip in the net profit margin to 6.70% by December 31, 2024, though the profitability level remained healthy. Overall, the positive trend in net profit margin indicates Cars.com Inc's ability to effectively control costs, increase operational efficiency, and drive profitability over the years, which bodes well for the company's financial performance and potential future growth.
Peer comparison
Dec 31, 2024