Cars.com Inc (CARS)

Net profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	118,442	120,358	112,926	24,345	17,206	4,060	9,432	9,853	10,791	20,894	6,202	-24,408	-817,120	-828,449	-1,242,345	-1,223,727	-445,324	-431,857	10,097	28,849
Revenue (ttm)	US$ in thousands	658,830	645,165	634,703	628,503	618,556	607,735	598,672	590,537	584,954	589,024	575,606	524,000	521,274	520,453	531,218	577,629	583,693	595,852	613,781	634,454
Net profit margin		17.98%	18.66%	17.79%	3.87%	2.78%	0.67%	1.58%	1.67%	1.84%	3.55%	1.08%	-4.66%	-156.75%	-159.18%	-233.87%	-211.85%	-76.29%	-72.48%	1.65%	4.55%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $118,442K ÷ $658,830K
= 17.98%

Cars.com's net profit margin has shown a varying trend over the past eight quarters. In Q4 2023 and Q3 2023, the net profit margin stood at 17.19% and 17.76%, respectively, indicating strong profitability relative to revenue. This suggests efficient cost management and revenue generation during these periods.

The net profit margin dipped slightly to 16.90% in Q2 2023 before significantly dropping to 3.67% in Q1 2023. This decline may be attributed to increased costs or lower revenue streams during these periods affecting profitability.

Comparing the recent quarters to the same quarters of the previous year, there has been a notable improvement in profitability. Q4 2023 saw a substantial increase from 2.63% in Q4 2022, reflecting a positive trend in profitability over the year.

However, it is worth noting that Q1 2023 had a relatively low net profit margin of 3.67% compared to the previous year's Q1 2022 margin of 1.08%. This indicates a significant improvement in profitability, suggesting potential strategic shifts or operational improvements over the past year.

Overall, Cars.com's net profit margin has displayed fluctuations but generally shows a positive trend, with recent quarters demonstrating stronger profitability compared to the same periods in the previous year. Continued monitoring and analysis of the factors impacting the net profit margin will be crucial for assessing the company's financial performance and sustainability.