KAR Auction Services Inc (KAR)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		0.64	0.57	0.48	0.59	1.09
DSO	days	571.05	640.40	763.16	620.63	335.58

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 0.64
= 571.05

Openlane Inc.'s Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment on its sales. Looking at the trend over the past five years, we can observe the following:

1. In 2023, the DSO decreased slightly to 64.74 days compared to 65.03 days in 2022. This indicates that the company improved its efficiency in collecting payments from customers.

2. In 2022, there was a slight increase in DSO to 65.03 days from 85.43 days in 2021. This suggests a potential delay in collecting receivables compared to the previous year.

3. The significant decrease in DSO to 61.26 days in 2020 from 85.43 days in 2021 indicates a considerable improvement in the company's ability to collect payments promptly.

4. In 2019, the DSO was 60.03 days, showing consistency in the company's collection efficiency compared to 2020.

Overall, Openlane Inc. has shown fluctuations in its DSO over the years, with improvements in collection efficiency in certain years and slight delays in others. It's essential for the company to monitor and manage its DSO effectively to ensure timely cash inflows and sustainable financial performance.