Cars.com Inc (CARS)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	1,111,860	1,118,510	1,120,540	1,143,130	1,172,450	1,103,190	1,085,540	1,002,220	1,024,870	1,050,170	1,051,460	1,069,220	1,007,200	998,127	1,020,880	1,035,810	1,075,710	1,068,450	1,077,640	1,255,920
Operating ROA		4.81%	4.35%	4.60%	4.75%	5.32%	6.09%	5.47%	6.23%	5.14%	3.51%	4.04%	4.00%	4.80%	6.03%	6.58%	3.31%	-82.49%	-84.10%	-126.69%	-107.26%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $53,498K ÷ $1,111,860K
= 4.81%

The operating return on assets (operating ROA) for Cars.com Inc shows a volatile trend from negative percentages in the past to positive percentages in recent periods. The company experienced a significant improvement in performance starting from March 31, 2021, with a positive operating ROA of 3.31%, which continued to increase over the next quarters up to December 31, 2023. However, there was a slight decline in the operating ROA for the last quarter of 2024, standing at 4.81%.

Overall, the positive trend in operating ROA indicates that the company's operations have become more efficient in generating profits relative to its asset base. Investors and stakeholders may view this improvement positively as it reflects the company's ability to generate earnings from its assets. Further monitoring of the operating ROA will be important to assess the company's ongoing operational performance and its ability to sustain profitability in the future.