Flagship explainer

What drives CarGurus, Inc.’s return on equity?

ROE is five filed business factors multiplied together.

DuPont return on equity factor treeReturn on equity branches into tax burden, interest burden, operating margin, asset turnover, and the equity multiplier.Return on equity34%Tax burden62%net income ÷ pretax incomeInterest burden103%pretax ÷ operating incomeOperating margin27%operating income ÷ revenueAsset turnover1.22×revenue ÷ average assetsEquity multiplier1.62×average assets ÷ average equityAs of 2025-12-31 · 1 SEC filing sourceBuy Like Buffett · buylikebuffett.com
DuPont source inputs
InputValueFiscal yearSource
$156MFY2025
Income before tax$253MFY2025
Operating income$244MFY2025
$907MFY2025
Ending assets$662MFY2025
Beginning assets$825MFY2024
$374MFY2025
$542MFY2024
Source: · event Dec 31, 2025 · retrieved Oct 15, 2026 · annual-row source set
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CARG dupont explainer — Buy Like Buffett · Buy Like Buffett