KAR Auction Services Inc (KAR)

Receivables 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
Revenue (ttm)	US$ in thousands	1,645,100	1,626,600	1,603,300	1,570,600	1,519,400	1,504,300	1,458,400	1,450,200	1,450,600	1,622,500	1,869,000	1,912,000	2,187,700	2,329,400	2,437,700	2,737,800	2,781,900	2,704,400	2,614,900	2,519,200
Receivables	US$ in thousands	2,573,800	2,698,100	2,712,000	2,725,700	2,665,800	2,953,500	3,085,800	3,168,100	3,033,000	2,733,000	2,634,100	2,618,200	2,256,200	2,216,900	2,108,600	2,173,900	2,557,700	2,605,800	2,648,400	2,937,300
Receivables turnover		0.64	0.60	0.59	0.58	0.57	0.51	0.47	0.46	0.48	0.59	0.71	0.73	0.97	1.05	1.16	1.26	1.09	1.04	0.99	0.86

December 31, 2023 calculation

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

The receivables turnover ratio of Openlane Inc. has shown fluctuations over the past eight quarters. The ratio indicates how efficiently the company is collecting its accounts receivable during a given period.

In Q4 2023, the receivables turnover ratio was 5.64, which was higher than the previous quarter at 4.78 in Q3 2023. This shows that the company improved its ability to collect outstanding receivables during that quarter.

Comparing the Q4 2023 ratio to the same period last year, Q4 2022, there was a slight decrease from 5.61 to 5.64. However, overall, the company's receivables turnover has been relatively stable over the past year.

The fluctuations in the receivables turnover ratio may indicate changes in the company's credit policies, customer payment behavior, or overall sales volume. A higher receivables turnover ratio is generally favorable as it signifies that the company is efficiently converting credit sales into cash, thus reducing the risk of bad debts and improving liquidity.

Further analysis of the company's receivables turnover trend and comparison to industry benchmarks may provide additional insights into Openlane Inc.'s overall financial health and efficiency in managing its accounts receivable.