KAR Auction Services Inc (KAR)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		0.64	0.60	0.59	0.58	0.57	0.51	0.47	0.46	0.48	0.59	0.71	0.73	0.97	1.05	1.16	1.26	1.09	1.04	0.99	0.86
DSO	days	571.05	605.44	617.40	633.44	640.40	716.63	772.30	797.38	763.16	614.82	514.42	499.81	376.43	347.37	315.72	289.82	335.58	351.69	369.68	425.58

December 31, 2023 calculation

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

To analyze Openlane Inc.'s days of sales outstanding (DSO) over the past eight quarters, we observe fluctuations in the collection period for accounts receivable. In Q4 2023, the DSO decreased to 64.74 days from 76.29 days in the previous quarter, indicating an improvement in collecting receivables. This positive trend aligns with efficient credit management or prompt customer payments.

Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), there was a slight decrease in DSO from 65.03 days to 64.74 days, suggesting that the company has maintained consistency in its collections process over this period.

Looking at Q3 2022, there was a significant reduction in DSO to 90.37 days, followed by a gradual decline in subsequent quarters. This downward trend reflects a more effective credit and collection policy, leading to faster conversion of receivables into cash.

Overall, Openlane Inc. has shown improvement in its DSO metric over the past year, indicating enhanced efficiency in managing accounts receivable and potentially better liquidity position. However, continued monitoring is necessary to ensure sustained performance in this area.