Cars.com Inc (CARS)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	48,188	118,442	17,206	7,719	-817,120
Total assets	US$ in thousands	1,111,860	1,172,450	1,024,870	1,007,200	1,075,710
ROA		4.33%	10.10%	1.68%	0.77%	-75.96%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $48,188K ÷ $1,111,860K
= 4.33%

Based on the provided data, the return on assets (ROA) for Cars.com Inc has shown significant fluctuations over the analyzed period. The ROA was at a concerning level of -75.96% as of December 31, 2020, indicating that the company was experiencing challenges in generating profits relative to its total assets.

However, there was a notable improvement in the ROA to 0.77% by December 31, 2021, suggesting that the company's profitability relative to its assets started to recover. Subsequently, the ROA continued to increase to 1.68% by December 31, 2022, indicating further enhancement in the company's asset utilization and profitability.

By December 31, 2023, the ROA surged to 10.10%, reflecting a significant improvement in the company's ability to generate profits from its assets. This substantial increase in ROA indicates that Cars.com Inc's profitability relative to its total assets experienced a remarkable upturn.

However, by December 31, 2024, the ROA slightly decreased to 4.33%, suggesting a slight decline in the company's profitability compared to the previous period. Overall, the analysis indicates that Cars.com Inc has made progress in optimizing its asset utilization and profitability, but fluctuations in the ROA highlight the need for continuous monitoring and strategic management of the company's assets to sustain profitability levels.