Cars.com Inc (CARS)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,172,450 | 1,024,870 | 1,007,200 | 1,075,710 | 2,027,990 |
| Operating ROA | 4.62% | 6.44% | 4.80% | -82.49% | -22.00% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $54,116K ÷ $1,172,450K
= 4.62%
Operating return on assets (ROA) is a key financial ratio that measures a company's efficiency in generating operating income relative to its total assets. The trend in Cars.com's operating ROA over the past five years shows fluctuation, with a slight decrease from 6.44% in 2022 to 4.62% in 2023.
The 2023 operating ROA of 4.62% indicates that the company generated approximately $0.0462 in operating income for every $1 of assets. Despite the decline from the previous year, the ratio remains relatively healthy, suggesting that Cars.com is effectively utilizing its assets to generate operating profits.
Comparing to earlier years, the operating ROA has shown an overall improvement compared to 0.76% in 2019, indicating that the company has become more efficient in generating operating income from its asset base. However, it is important for Cars.com to continue monitoring and enhancing its operational efficiency to sustain and potentially increase its operating ROA in the future.
Peer comparison
Dec 31, 2023