Cars.com Inc (CARS)

Operating 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
Operating income (ttm)	US$ in thousands	54,116	58,992	64,573	67,624	66,036	50,287	42,462	42,732	48,338	60,173	67,162	34,283	-887,327	-898,518	-1,365,297	-1,347,069	-446,060	-426,896	49,151	72,704
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
Operating profit margin		8.21%	9.14%	10.17%	10.76%	10.68%	8.27%	7.09%	7.24%	8.26%	10.22%	11.67%	6.54%	-170.22%	-172.64%	-257.01%	-233.21%	-76.42%	-71.64%	8.01%	11.46%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $54,116K ÷ $658,830K
= 8.21%

The operating profit margin of Cars.com has shown fluctuating trends over the past eight quarters. In Q1 2023, the operating profit margin reached its peak at 10.20%, indicating that the company was able to generate a higher percentage of profit from its operations relative to the revenue earned during that period. However, this was followed by a decrease in Q2 2023 to 9.67% and a further decline in Q3 2023 to 8.70%. The operating profit margin dropped to 7.85% in Q4 2023, marking the lowest point in the past year.

Comparing the operating profit margin from Q4 2022 to Q4 2023, there was a slight decrease from 10.10% to 7.85%. This decline suggests that the company may have faced challenges in maintaining profitability in their operations during the most recent quarter.

Overall, Cars.com's operating profit margin has shown some variability in recent quarters, indicating fluctuations in the efficiency of the company's operations in generating profits. It will be important for the company to closely monitor and manage its operating expenses and revenue generation to sustain and improve its operating profit margin in the future.