Cars.com Inc (CARS)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	118,442	17,206	10,791	-789,106	-445,324
Total assets	US$ in thousands	1,172,450	1,024,870	1,007,200	1,075,710	2,027,990
ROA		10.10%	1.68%	1.07%	-73.36%	-21.96%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $118,442K ÷ $1,172,450K
= 10.10%

The return on assets (ROA) of Cars.com has shown significant variability over the past five years. In 2023, the ROA improved significantly to 10.10%, indicating that the company generated a strong return on its assets compared to the previous years. This could be attributed to improved operational efficiency, better asset utilization, or increased profitability.

In contrast, the ROA was relatively low in 2022 at 1.68%, indicating that the company's ability to generate profit from its assets was not as efficient as in 2023. Similarly, in 2021, the ROA was 0.77%, showing a slight improvement from the previous year but still relatively lower.

The ROA took a significant downturn in 2020 and 2019, with negative values of -75.96% and -21.96% respectively. These negative ROA values suggest that the company's assets were not effectively utilized to generate profits during those years, and the company may have incurred losses or faced financial challenges.

Overall, the trend in the ROA of Cars.com indicates a mix of performance levels, with substantial improvements in some years and challenges in others. It is important for the company to continue striving for efficiency and profitability in asset utilization to sustain or improve its return on assets in the future.