KAR Auction Services Inc (KAR)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	956,300	867,600	834,300	1,299,900	1,284,800
Inventory	US$ in thousands	—	0	15,500	25,800	60,200
Inventory turnover		—	—	53.83	50.38	21.34

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $956,300K ÷ $—K
= —

KAR Auction Services Inc's inventory turnover has shown a significant improvement over the years, reflecting the company's effectiveness in managing its inventory. The ratio has increased from 21.34 in December 31, 2020, to 50.38 in December 31, 2021, and further to 53.83 in December 31, 2022. This indicates that the company is selling its inventory more efficiently within a shorter period, which is a positive sign of operational efficiency. However, it is worth noting that the data for December 31, 2023, and December 31, 2024, is not available (represented as "—"), which may limit a complete trend analysis. Overall, the increasing trend in inventory turnover suggests that KAR Auction Services Inc is managing its inventory effectively and converting it into sales at a faster pace in the recent years.