KAR Auction Services Inc (KAR)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,645,100	1,519,400	1,450,600	1,326,900	2,781,900
Receivables	US$ in thousands	2,573,800	2,665,800	3,033,000	2,256,200	2,557,700
Receivables turnover		0.64	0.57	0.48	0.59	1.09

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,645,100K ÷ $2,573,800K
= 0.64

The receivables turnover ratio measures how efficiently a company collects payments from its customers. A higher ratio is generally considered more favorable as it indicates the company is collecting its accounts receivable more quickly.

Openlane Inc.'s receivables turnover has fluctuated over the past five years. In 2023, the ratio was 5.64, showing a slight increase compared to 5.61 in 2022. This indicates that Openlane Inc. collected its accounts receivable slightly faster in 2023.

The ratio was significantly lower in 2021 at 4.27, which suggests that Openlane Inc. took longer to collect its receivables that year. However, the ratio improved in 2020 and 2019 at 5.96 and 6.08, respectively, indicating a more efficient collection of accounts receivable in those years.

Overall, while there have been fluctuations in Openlane Inc.'s receivables turnover ratio over the years, the trend shows some level of efficiency in collecting payments from customers, particularly in 2023 and 2019. It is important for the company to continue monitoring and managing its accounts receivable effectively to maintain healthy cash flows and financial stability.