KAR Auction Services Inc (KAR)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,788,500 | 1,645,100 | 1,519,400 | 2,251,600 | 2,187,700 |
| Total assets | US$ in thousands | 4,622,300 | 4,726,300 | 5,119,800 | 7,417,200 | 6,798,200 |
| Total asset turnover | 0.39 | 0.35 | 0.30 | 0.30 | 0.32 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,788,500K ÷ $4,622,300K
= 0.39
The total asset turnover for KAR Auction Services Inc has fluctuated over the years, declining from 0.32 in December 2020 to 0.30 in December 2021 and 2022. However, there was a slight improvement in December 2023, where the total asset turnover increased to 0.35 and further improved to 0.39 in December 2024.
A total asset turnover ratio of less than 1 indicates that the company is generating less in sales relative to its total assets. The increase in the total asset turnover ratio in the later years suggests that the company is becoming more efficient in utilizing its assets to generate sales. However, it is essential to analyze the trend alongside other financial ratios and considerations to get a complete picture of KAR Auction Services Inc's financial performance.
Peer comparison
Dec 31, 2024