Cars.com Inc (CARS)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	118,442	120,358	112,926	24,345	17,206	4,060	9,432	9,853	10,791	20,894	6,202	-24,408	-817,120	-828,449	-1,242,345	-1,223,727	-445,324	-431,857	10,097	28,849
Total assets	US$ in thousands	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	2,027,990	2,059,880	2,527,390	2,580,270
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%

December 31, 2023 calculation

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

Cars.com's return on assets (ROA) has shown a positive trend over the past eight quarters, increasing from 0.63% in Q1 2022 to 10.10% in Q4 2023. The significant improvement in ROA reflects the company's ability to generate more profit relative to its total assets. This indicates that the company has been effectively utilizing its assets to drive profitability. However, the ROA dropped to 2.43% in Q1 2023, suggesting a temporary decline in asset efficiency during that period. Overall, the upward trajectory of ROA demonstrates Cars.com's capacity to generate higher returns from its asset base over time.