Cars.com Inc (CARS)

Net profit margin

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
Net income (ttm) US$ in thousands 48,188 39,230 25,002 107,747 118,442 120,358 112,926 24,345 17,206 988 6,360 6,781 7,719 20,894 6,202 -24,408 -817,120 -828,449 -1,242,345 -1,223,727
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
Net profit margin 6.70% 5.46% 3.51% 15.34% 17.19% 17.76% 16.90% 3.67% 2.63% 0.15% 1.00% 1.08% 1.24% 3.38% 1.02% -4.42% -149.24% -151.54% -224.10% -203.76%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $48,188K ÷ $719,152K
= 6.70%

Net profit margin is a key financial ratio that indicates the profitability of a company by measuring the percentage of net income generated relative to its total revenue. In the case of Cars.com Inc, the net profit margin showed a fluctuating trend over the periods indicated in the data.

From March 31, 2020, to September 30, 2021, the company experienced negative net profit margins, indicating that it was incurring losses. However, starting from March 31, 2022, the trend shifted positively, with the net profit margin gradually increasing over subsequent quarters.

The most significant improvement in net profit margin occurred between March 31, 2023, and December 31, 2023, where the margin jumped from 3.67% to 17.19%. This sharp increase signifies a notable enhancement in the company's efficiency in generating profits from its operations.

Subsequently, the net profit margin continued to exhibit positive growth, reaching a peak of 17.76% on September 30, 2023. Although there was a slight decline in the margin by the end of December 31, 2023, the company still maintained a strong profitability ratio.

As of December 31, 2024, the net profit margin stood at 6.70%, showcasing a consistent improvement compared to the earlier negative margins reported. This positive trend suggests that Cars.com Inc has effectively managed its expenses and grown its net income in relation to its revenue, reflecting a healthier financial performance.