Cars.com Inc (CARS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	492,108	483,010	477,457	384,987	384,430	376,527	391,388	396,087	398,020	394,574	385,456	374,016	368,190	322,373	328,781	347,890	1,141,070	1,141,480	1,569,150	1,592,670
ROE		24.07%	24.92%	23.65%	6.32%	4.48%	1.08%	2.41%	2.49%	2.71%	5.30%	1.61%	-6.53%	-221.93%	-256.98%	-377.86%	-351.76%	-39.03%	-37.83%	0.64%	1.81%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $118,442K ÷ $492,108K
= 24.07%

Cars.com's return on equity (ROE) has shown a positive trend over the past eight quarters, increasing from 1.71% in Q1 2022 to 24.07% in Q4 2023. This indicates that the company has been effectively utilizing shareholders' equity to generate profits. The significant improvement in ROE is a positive sign and suggests that the company's profitability and efficiency have been on an upward trajectory. The consistent increase in ROE points towards improved financial performance and efficient management of the company's assets and liabilities. Overall, Cars.com's ROE trend reflects strong financial health and effective utilization of equity capital.