KAR Auction Services Inc (KAR)
Total asset 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 |
| Total assets | US$ in thousands | 4,726,300 | 4,729,300 | 4,897,400 | 5,147,900 | 5,119,800 | 5,301,300 | 6,126,000 | 7,792,400 | 7,450,700 | 7,170,200 | 7,118,300 | 7,160,200 | 6,798,200 | 6,909,900 | 6,494,000 | 5,999,700 | 6,581,200 | 6,579,700 | 6,377,800 | 6,301,600 |
| Total asset turnover | 0.35 | 0.34 | 0.33 | 0.31 | 0.30 | 0.28 | 0.24 | 0.19 | 0.19 | 0.23 | 0.26 | 0.27 | 0.32 | 0.34 | 0.38 | 0.46 | 0.42 | 0.41 | 0.41 | 0.40 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,645,100K ÷ $4,726,300K
= 0.35
Total asset turnover is a key efficiency ratio that measures a company's ability to generate sales in relation to its total assets. It indicates how well a company is utilizing its assets to generate revenue.
Analyzing the data provided for Openlane Inc. over the past eight quarters, we observe that the total asset turnover has varied within the range of 0.26 to 0.35. The ratio reached its highest point of 0.35 in Q4 2023 and its lowest point of 0.26 in Q1 2022.
A higher total asset turnover ratio is generally indicative of better asset utilization efficiency, as it means the company generates a higher volume of sales relative to its asset base. Conversely, a lower ratio suggests that the company may not be effectively leveraging its assets to generate sales.
Overall, Openlane Inc. has shown fluctuations in its total asset turnover over the analyzed period. Management should further investigate the factors contributing to these variations and work towards improving asset efficiency to boost sales generation and overall performance.
Peer comparison
Dec 31, 2023