Is the business good?
How good a business is CVNA?
Carvana earns 25% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
25%
Return on invested capital · cost of capital 9.0% · 16 points above what the capital costs: growth creates value
- Operating margin
- 9.2%
Operating margin · Auto & Truck Dealerships median 5.3% · 12 months to Q1 2026
- Cash conversion
- 0.51×
Cash conversion · 2.38× a year ago · some of the reported profit has not turned into cash yet
- Gross margin
- 20%
Gross margin
| Year | Operating margin |
|---|---|
| FY2022 | −17% |
| FY2023 | −0.74% |
| FY2024 | 7.2% |
| FY2025 | 9.3% |
Details›
- Gross margin12 months to Q1 2026
- 20%
- Operating margin12 months to Q1 2026
- 9.2%
- Net margin12 months to Q1 2026
- 6.4%
- Free cash flow margin
- 3.3%
- Revenue, trailing twelve months
- $22.5B
- Free cash flow, trailing twelve months
- $740M
- Net income, trailing twelve months
- $1.44B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 25%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Auto & Truck Dealerships
Ranks #2 of 15 by Smart Score