Cars.com Inc (CARS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 37.27% | 37.83% | 38.25% | 38.54% | 37.94% | 35.57% | 34.43% | 33.98% | 34.38% | 52.50% | 53.30% | 51.09% | -124.45% | -124.81% | -208.76% | -174.37% | -3.57% | -5.89% | 83.65% | 84.42% |
| Operating profit margin | 8.21% | 9.14% | 10.17% | 10.76% | 10.68% | 8.27% | 7.09% | 7.24% | 8.26% | 10.22% | 11.67% | 6.54% | -170.22% | -172.64% | -257.01% | -233.21% | -76.42% | -71.64% | 8.01% | 11.46% |
| Pretax margin | 2.75% | 5.06% | 4.42% | 5.30% | 3.65% | 0.11% | 0.87% | 0.80% | 1.62% | -2.22% | -0.93% | -6.82% | -185.01% | -180.51% | -264.25% | -239.92% | -81.43% | -76.38% | 3.31% | 6.97% |
| Net profit margin | 17.98% | 18.66% | 17.79% | 3.87% | 2.78% | 0.67% | 1.58% | 1.67% | 1.84% | 3.55% | 1.08% | -4.66% | -156.75% | -159.18% | -233.87% | -211.85% | -76.29% | -72.48% | 1.65% | 4.55% |
Cars.com has shown consistent gross profit margins ranging between 82.09% to 82.42% over the past eight quarters, indicating efficient management of direct costs related to generating revenue. However, there has been a slight decrease in operating profit margins from 10.10% in Q4 2022 to 7.85% in Q4 2023. This suggests that the company's operating expenses may be increasing relative to its revenue.
The pretax margin has fluctuated between 0.10% to 5.02% over the same period, with a noticeable improvement in Q3 and Q4 2023 compared to previous quarters. This improvement indicates better control over non-operating expenses and interest costs.
Net profit margins have varied significantly, ranging from 0.15% to 17.76% over the past eight quarters. There was a substantial increase in Q4 2023 compared to the previous quarters, signifying higher bottom-line profitability relative to revenue. However, the significant fluctuations in net profit margins suggest that the company may be experiencing volatility in its overall profitability.
Overall, while Cars.com has maintained strong gross profit margins, the fluctuating trends in operating, pretax, and net profit margins indicate the need for close monitoring of operating expenses and non-operating costs to ensure consistent and sustainable profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 10.10% | 10.91% | 10.40% | 2.43% | 1.68% | 0.39% | 0.90% | 0.92% | 1.07% | 2.09% | 0.61% | -2.36% | -75.96% | -77.54% | -115.28% | -97.44% | -21.96% | -20.97% | 0.40% | 1.12% |
| Return on total capital | 5.68% | 6.46% | 7.08% | 8.21% | 7.84% | 5.85% | 4.79% | 4.77% | 5.65% | 6.96% | 7.56% | 3.82% | -93.96% | -101.98% | -145.58% | -121.22% | -25.46% | -24.09% | 2.22% | 3.24% |
| Return on equity (ROE) | 24.07% | 24.92% | 23.65% | 6.32% | 4.48% | 1.08% | 2.41% | 2.49% | 2.71% | 5.30% | 1.61% | -6.53% | -221.93% | -256.98% | -377.86% | -351.76% | -39.03% | -37.83% | 0.64% | 1.81% |
Cars.com's profitability ratios show a mixed performance over the past eight quarters. The Operating Return on Assets (Operating ROA) has fluctuated but generally decreased from Q1 2022 to Q4 2023, indicating a trend of lower operating efficiency in generating profits from its assets. The Return on Assets (ROA) also varied greatly, with a significant increase from Q3 2022 to Q1 2023 followed by a notable drop in Q2 2023, suggesting inconsistent profitability levels relative to its total assets.
The Return on Total Capital improved in Q1-Q3 2023 compared to the previous quarters, which indicates that Cars.com has been generating better returns on its total invested capital. The Return on Equity (ROE) has shown a similar pattern of improvement over the same period, signifying the enhanced profitability for the company's shareholders.
Overall, while Cars.com has demonstrated fluctuations in its profitability ratios, the recent improvements in Return on Total Capital and Return on Equity indicate positive developments in generating returns for both the company and its shareholders. However, the company should continue to focus on enhancing its operational efficiency to sustain and further improve its profitability levels in the future.