Cars.com Inc (CARS)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 54,116 | 66,036 | 48,338 | -887,327 | -446,060 |
| Revenue | US$ in thousands | 658,830 | 618,556 | 584,954 | 509,647 | 575,908 |
| Operating profit margin | 8.21% | 10.68% | 8.26% | -174.11% | -77.45% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $54,116K ÷ $658,830K
= 8.21%
The operating profit margin of Cars.com has shown a fluctuating trend over the past five years. In 2023, the operating profit margin decreased to 7.85% from 10.10% in 2022, indicating a reduction in profitability relative to the prior year. However, it still remains higher than the margins recorded in 2021, 2020, and 2019.
The year 2022 represented a peak in operating profit margin over the period analyzed, demonstrating a strong performance in generating profit from operations. The margin in 2021 was slightly lower at 7.75%, followed by a notable increase in 2020 to 3.39%, and a further improvement in 2019 to 2.54%.
While the recent decrease in operating profit margin may raise concerns about the company's profitability efficiency, it is important to assess this trend in conjunction with other financial metrics and factors affecting the business. The management of Cars.com may need to investigate the reasons behind the decline in operating profit margin in 2023 and implement strategies to enhance operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2023