Cars.com Inc (CARS)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 53,498 | 48,652 | 51,514 | 54,331 | 62,355 | 67,231 | 59,425 | 62,476 | 52,649 | 36,900 | 42,462 | 42,732 | 48,338 | 60,173 | 67,162 | 34,283 | -887,327 | -898,518 | -1,365,297 | -1,347,069 |
| 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 |
| Operating profit margin | 7.44% | 6.77% | 7.22% | 7.74% | 9.05% | 9.92% | 8.90% | 9.43% | 8.05% | 5.73% | 6.68% | 6.80% | 7.75% | 9.73% | 11.08% | 6.20% | -162.07% | -164.36% | -246.27% | -224.30% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $53,498K ÷ $719,152K
= 7.44%
The operating profit margin of Cars.com Inc showed a significant improvement over the past few years, transitioning from negative percentages to positive percentages. From March 31, 2020, to December 31, 2022, the company experienced negative operating profit margins, indicating that its operating expenses exceeded its revenues during that period. However, starting from March 31, 2023, the trend reversed, with the operating profit margin turning positive.
The positive operating profit margins from March 31, 2023, onwards signify that Cars.com Inc was able to generate profits from its core operations, indicating more effective cost management or revenue generation strategies. The operating profit margins ranged from a low of 5.73% on September 30, 2022, to a high of 11.08% on June 30, 2021, showing some variability but generally staying above the breakeven point.
Overall, the improvement in operating profit margins suggests that the company was able to enhance its operational efficiency and profitability over the years, potentially leading to a stronger financial position and performance in the future.
Peer comparison
Dec 31, 2024