KAR Auction Services Inc (KAR)

Total asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,751,500	1,687,800	1,655,700	1,640,800	1,645,100	1,626,600	1,603,300	1,570,600	1,519,400	1,696,000	1,838,200	2,039,400	2,251,600	2,231,800	2,290,200	2,123,800	2,187,700	2,329,400	2,437,700	2,737,800
Total assets	US$ in thousands	4,622,300	4,625,800	4,617,800	4,818,400	4,726,300	4,729,300	4,897,400	5,147,900	5,119,800	5,301,300	6,126,000	7,792,400	7,417,200	7,170,200	7,118,300	7,160,200	6,798,200	6,909,900	6,494,000	5,999,700
Total asset turnover		0.38	0.36	0.36	0.34	0.35	0.34	0.33	0.31	0.30	0.32	0.30	0.26	0.30	0.31	0.32	0.30	0.32	0.34	0.38	0.46

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,751,500K ÷ $4,622,300K
= 0.38

The total asset turnover ratio for KAR Auction Services Inc has been showing a declining trend over the past few years. Starting at 0.46 in March 2020, the ratio has gradually decreased to 0.38 by June 2020, further declining to 0.32 by December 2021. The ratio continued to fluctuate slightly between 0.30 and 0.32 until September 2022.

From March 2023 onwards, there was a slight improvement in the total asset turnover ratio, increasing to 0.35 by December 2023. The ratio continued to show a positive trend, reaching 0.38 by December 2024.

Overall, the decreasing trend in the total asset turnover ratio up to 2022 could indicate possible inefficiencies in utilizing the company's assets to generate revenue. However, the improving trend from 2023 onwards suggests that the company may have implemented measures to better utilize its assets and improve overall efficiency in generating sales. Further monitoring is needed to evaluate the sustainability of this positive trend.