Cars.com Inc (CARS)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	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	2,027,990	2,059,880	2,527,390	2,580,270
Operating ROA		4.62%	5.35%	5.95%	6.75%	6.44%	4.79%	4.04%	4.00%	4.80%	6.03%	6.58%	3.31%	-82.49%	-84.10%	-126.69%	-107.26%	-22.00%	-20.72%	1.94%	2.82%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $54,116K ÷ $1,172,450K
= 4.62%

Cars.com has shown a fluctuating trend in operating return on assets (ROA) over the past eight quarters. The operating ROA ranged from a low of 4.00% in Q1 2022 to a high of 6.75% in Q1 2023. Generally, the operating ROA demonstrates a positive growth pattern, with some variability in quarterly performance. Despite some volatility, the trend is generally upward, indicating an improving ability of the company to generate operating income from its assets over time. It is important for the company to continue monitoring and improving its operating ROA to ensure sustainable profitability and efficiency in asset utilization.