Cars.com Inc (CARS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	511,485	492,108	384,430	366,934	340,176
ROE		9.42%	24.07%	4.48%	2.10%	-240.21%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $48,188K ÷ $511,485K
= 9.42%

Based on the provided data, Cars.com Inc's return on equity (ROE) has shown significant fluctuations over the years:

1. December 31, 2020: ROE was -240.21%, indicating that the company's net income was negative in relation to shareholders' equity. This is a concerning sign as it suggests the company was not profitable and may have had financial difficulties.

2. December 31, 2021: ROE improved to 2.10%, showing a return to profitability, albeit at a low level. This could indicate some improvement in the company's operations or financial performance compared to the previous year.

3. December 31, 2022: ROE further increased to 4.48%, suggesting a continued improvement in profitability and efficiency in utilizing shareholders' equity.

4. December 31, 2023: ROE experienced a significant jump to 24.07%, indicating a substantial increase in the company's ability to generate profits from shareholder investments. This could be a result of strong financial performance, cost management, or effective utilization of resources.

5. December 31, 2024: ROE fell to 9.42%, showing a decrease from the previous year's high but remaining at a reasonable level. This could signify some challenges faced by the company or changes in its financial structure.

In conclusion, while Cars.com Inc's ROE has shown fluctuations over the years, there has been an overall improvement from negative values to positive returns. It is essential for investors and stakeholders to monitor these trends closely to assess the company's financial health and performance over time.