Cars.com Inc (CARS)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	48,188	39,230	25,002	107,747	118,442	120,358	112,926	24,345	17,206	988	6,360	6,781	7,719	20,894	6,202	-24,408	-817,120	-828,449	-1,242,345	-1,223,727
Total assets	US$ in thousands	1,111,860	1,118,510	1,120,540	1,143,130	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
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%

December 31, 2024 calculation

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

The return on assets (ROA) for Cars.com Inc has shown significant fluctuations over the periods from March 31, 2020, to December 31, 2024.

The ROA started at negative levels, with a steep decrease in March 2020 (-97.44%), reaching its lowest point in June 2020 (-115.28%). Subsequently, there was some improvement in the metric, but it remained negative until March 2021 when it turned positive but at a very low level (2.36%).

From March 2021 onwards, there was a consistent upward trend in the ROA, with notable increases in each subsequent period. By June 2024, the ROA reached a peak of 10.40%, indicating that the company was generating a higher return on its assets.

Overall, the positive trend in ROA from March 2021 to June 2024 suggests that Cars.com Inc was becoming more efficient in utilizing its assets to generate profits. This improvement could be attributed to various factors such as cost-saving measures, enhanced operational efficiency, and strategic investments that contributed to the company's profitability.