Cars.com Inc (CARS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 29,666 | 50,530 | 67,036 | 7,719 | -909,653 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 511,485 | 492,108 | 384,430 | 366,934 | 340,176 |
| Return on total capital | 5.80% | 10.27% | 17.44% | 2.10% | -267.41% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $29,666K ÷ ($—K + $511,485K)
= 5.80%
Cars.com Inc's return on total capital has shown significant improvement over the past few years, as evident from the following data:
- In December 2020, the return on total capital was -267.41%, indicating that the company's capital allocation and utilization were inefficient, resulting in a significant loss compared to the capital invested.
- By December 2021, the return on total capital improved to 2.10%, signifying a turnaround in the company's capital efficiency.
- In December 2022, the return on total capital further increased to 17.44%, reflecting a substantial improvement in how effectively the company was generating returns from its total capital.
- While the return on total capital decreased in December 2023 to 10.27%, it remained at a relatively healthy level, indicating that the company was still efficient in utilizing its capital.
- By December 2024, the return on total capital declined to 5.80%, suggesting a slight dip in capital efficiency compared to the previous year.
Overall, the trend shows a noteworthy improvement in Cars.com Inc's capital efficiency over the period, with some fluctuations in the later years. The company's ability to generate returns from its total capital has generally improved, although it experienced a slight dip in the most recent year.
Peer comparison
Dec 31, 2024