KAR Auction Services Inc (KAR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,788,500 | 1,645,100 | 1,519,400 | 2,251,600 | 2,187,700 |
| Property, plant and equipment | US$ in thousands | — | — | 123,600 | 904,900 | 589,900 |
| Fixed asset turnover | — | — | 12.29 | 2.49 | 3.71 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,788,500K ÷ $—K
= —
The fixed asset turnover ratio for KAR Auction Services Inc indicates the company's efficiency in generating revenue from its investment in fixed assets.
- In December 31, 2020, the fixed asset turnover ratio was 3.71, suggesting that for every dollar invested in fixed assets, the company generated $3.71 in revenue.
- By December 31, 2021, the ratio declined to 2.49, indicating a decrease in the efficiency of utilizing fixed assets to generate revenue.
- In December 31, 2022, there was a significant improvement in the fixed asset turnover ratio, reaching 12.29, signaling a remarkable efficiency in generating revenue from fixed assets.
- However, there is missing data for December 31, 2023 and December 31, 2024, which limits a complete trend analysis.
Overall, the fluctuation in the fixed asset turnover ratio over the analyzed period suggests changes in how effectively KAR Auction Services Inc is utilizing its fixed assets to generate revenue, with a notable spike in efficiency in 2022. The company should continue monitoring and optimizing the utilization of its fixed assets to sustain or improve its financial performance.
Peer comparison
Dec 31, 2024