KAR Auction Services Inc (KAR)

Fixed asset turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 1,751,500 1,687,800 1,655,700 1,640,800 1,645,100 1,626,600 1,603,300 1,570,600 1,519,400 1,696,000 1,838,200 2,039,400 2,251,600 2,231,800 2,290,200 2,123,800 2,187,700 2,329,400 2,437,700 2,737,800
Property, plant and equipment US$ in thousands — — — — — 192,800 118,900 120,400 123,600 131,300 138,500 142,200 904,900 901,300 918,600 578,200 589,900 585,200 583,700 594,000
Fixed asset turnover — — — — — 8.44 13.48 13.04 12.29 12.92 13.27 14.34 2.49 2.48 2.49 3.67 3.71 3.98 4.18 4.61

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,751,500K ÷ $—K
= —

The fixed asset turnover ratio for KAR Auction Services Inc has shown fluctuations over the analyzed period. From March 31, 2020, to December 31, 2021, the ratio steadily declined from 4.61 to 2.49, indicating a decrease in the company's efficiency in generating sales revenue from its fixed assets.

However, there was a significant improvement in the fixed asset turnover ratio in the following period from March 31, 2022, to June 30, 2023, where the ratio increased to a range of 12.29 to 13.48. This surge in the ratio suggests a notable improvement in the company's ability to utilize its fixed assets more efficiently to generate sales.

In the subsequent period from September 30, 2023, the fixed asset turnover ratio decreased to 8.44, indicating a slight decline in efficiency compared to the previous period. Moreover, from September 30, 2023, to December 31, 2024, data is unavailable, making it difficult to assess the performance during this period.

Overall, the trend in KAR Auction Services Inc's fixed asset turnover ratio highlights periods of both improvement and decline in the efficiency of generating sales from fixed assets. It would be essential for stakeholders to monitor this ratio continuously to evaluate the company's operational efficiency and asset utilization in the future.