KAR Auction Services Inc (KAR)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,560,800	1,547,200	1,542,500	1,293,900	1,280,800	1,443,800	1,572,300	1,709,700	1,862,800	1,869,900	1,883,400	1,787,200	1,876,900	1,971,400	2,083,900	1,869,900	1,503,600	1,120,600	733,400	753,000
Payables	US$ in thousands	556,600	646,400	625,700	683,800	551,200	645,600	736,100	833,500	785,300	1,070,200	1,074,500	1,118,100	688,900	938,100	983,800	354,300	704,600	718,500	847,100	997,800
Payables turnover		2.80	2.39	2.47	1.89	2.32	2.24	2.14	2.05	2.37	1.75	1.75	1.60	2.72	2.10	2.12	5.28	2.13	1.56	0.87	0.75

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,560,800K ÷ $556,600K
= 2.80

Openlane Inc.'s payables turnover ratio has fluctuated over the past eight quarters, ranging from a low of 1.24 in Q1 2023 to a high of 1.56 in Q4 2023. Generally, the company's payables turnover ratio has shown a stable trend, indicating the efficiency at which Openlane manages its accounts payable. A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently within the period, potentially reflecting strong liquidity management. Conversely, a lower payables turnover ratio may imply that the company is taking longer to pay its suppliers, which could signal cash flow challenges or strained supplier relationships.

Overall, Openlane Inc.'s payables turnover ratio indicates a moderate level of efficiency in managing its payables. It would be important for the company to monitor this ratio over time to ensure that it remains within an optimal range and to address any potential issues that may arise with the management of its accounts payable.