Cars.com Inc (CARS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 67.33% | 67.41% | 67.24% | 74.68% | 82.27% | 82.27% | 82.35% | 82.35% | 82.42% | 82.09% | 81.85% | 81.85% | 81.69% | 81.87% | 82.08% | 81.30% | 81.45% | 81.90% | 82.22% | 83.35% |
| 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% |
| Pretax margin | 8.60% | 6.08% | 3.05% | 0.91% | 2.63% | 4.82% | 4.20% | 5.02% | 3.45% | 0.10% | 0.82% | 0.75% | 1.52% | 2.42% | 3.73% | -1.40% | -171.03% | -171.85% | -253.21% | -230.76% |
| Net profit margin | 6.70% | 5.46% | 3.51% | 15.34% | 17.19% | 17.76% | 16.90% | 3.67% | 2.63% | 0.15% | 1.00% | 1.08% | 1.24% | 3.38% | 1.02% | -4.42% | -149.24% | -151.54% | -224.10% | -203.76% |
The profitability ratios of Cars.com Inc have shown some fluctuations over the period analyzed.
1. Gross Profit Margin: The gross profit margin has been consistently high, ranging from 67.24% to 83.35%. This indicates that the company has been able to effectively manage its production costs and generate a healthy profit on sales.
2. Operating Profit Margin: The operating profit margin started with negative values in 2020 but improved gradually over time, reaching positive values from 2021 onwards. This suggests that the company has been able to control its operating expenses and improve profitability.
3. Pre-tax Margin: The pre-tax margin also started in negative territory in 2020 but showed a positive trend in the following years. This indicates that the company's pre-tax earnings have been improving gradually, reflecting better financial performance.
4. Net Profit Margin: The net profit margin has shown significant improvement from negative values in 2020 to positive values in the later years. This indicates that the company has been able to effectively manage its overall expenses and generate higher profits after accounting for all costs.
Overall, the improving trend in the operating, pre-tax, and net profit margins indicates that Cars.com Inc has been working on improving its profitability and financial performance over the analyzed period.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 4.33% | 3.51% | 2.23% | 9.43% | 10.10% | 10.91% | 10.40% | 2.43% | 1.68% | 0.09% | 0.60% | 0.63% | 0.77% | 2.09% | 0.61% | -2.36% | -75.96% | -77.54% | -115.28% | -97.44% |
| Return on total capital | 13.16% | 12.95% | 8.64% | 8.85% | 10.27% | 13.52% | 12.86% | 17.55% | 15.25% | 10.04% | 11.08% | 11.02% | 12.80% | 16.04% | 18.41% | 9.51% | -263.93% | -281.38% | -417.60% | -389.53% |
| Return on equity (ROE) | 9.42% | 7.81% | 5.03% | 22.38% | 24.07% | 24.92% | 23.65% | 6.32% | 4.48% | 0.26% | 1.62% | 1.71% | 2.10% | 5.70% | 1.74% | -7.05% | -240.21% | -256.98% | -377.86% | -351.76% |
Cars.com Inc's profitability ratios have shown significant improvements over the past few years.
- Operating return on assets (Operating ROA) increased from negative percentages in early 2020 to around 6% by the end of 2023. This indicates that the company is generating positive operating income relative to its assets.
- Return on assets (ROA) also improved from negative percentages in early 2020 to about 4.81% by the end of 2024. This shows that the company's net income is increasing in relation to its total assets.
- Return on total capital increased from negative percentages in 2020 to around 13.16% by the end of 2024. This suggests that the company is generating higher returns on its total capital employed.
- Return on equity (ROE) showed a similar positive trend, rising from negative figures in early 2020 to 9.42% by the end of 2024. This indicates that the company's net income is growing in comparison to shareholders' equity.
Overall, the improving trend in profitability ratios reflects Cars.com Inc's enhanced efficiency and financial performance over the analyzed period.