Cars.com Inc (CARS)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 67,295 65,073 42,922 42,606 50,530 65,289 61,385 67,569 58,642 37,800 43,362 43,632 46,976 58,811 65,800 32,921 -897,828 -907,097 -1,372,974 -1,355,137
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total stockholders’ equity US$ in thousands 511,485 502,425 496,891 481,450 492,108 483,010 477,457 384,987 384,430 376,527 391,388 396,087 366,934 366,560 357,442 346,002 340,176 322,373 328,781 347,890
Return on total capital 13.16% 12.95% 8.64% 8.85% 10.27% 13.52% 12.86% 17.55% 15.25% 10.04% 11.08% 11.02% 12.80% 16.04% 18.41% 9.51% -263.93% -281.38% -417.60% -389.53%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $67,295K ÷ ($—K + $511,485K)
= 13.16%

Cars.com Inc's return on total capital has shown significant fluctuations over the past few years. The company experienced negative returns in the first half of 2020, indicating that its capital was not being effectively utilized to generate profits. However, from March 2021 onwards, there was a notable improvement in the return on total capital, with positive percentages indicating a better utilization of the company's capital to generate returns.

During the latter part of 2021 and into 2022, Cars.com Inc's return on total capital ranged between 10% and 18%, suggesting a more efficient use of capital and improved profitability. Despite a slight dip in the first quarter of 2024, the company managed to maintain a return on total capital above 8% throughout the year, with figures reaching as high as 13.16% by the end of December 2024.

Overall, the trend in return on total capital for Cars.com Inc reflects a variability in the company's performance, transitioning from negative returns to positive figures and indicating a potential improvement in capital allocation and operational efficiency over the years.