KAR Auction Services Inc (KAR)
Working capital 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 current assets | US$ in thousands | 2,851,500 | 2,841,900 | 3,022,400 | 3,358,300 | 3,175,200 |
Total current liabilities | US$ in thousands | 2,565,500 | 2,478,800 | 2,643,200 | 2,975,800 | 2,250,600 |
Working capital turnover | 6.25 | 4.53 | 4.01 | 5.89 | 2.37 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,788,500K ÷ ($2,851,500K – $2,565,500K)
= 6.25
The working capital turnover of KAR Auction Services Inc has shown a positive trend over the past five years, increasing from 2.37 in December 31, 2020, to 6.25 in December 31, 2024. This indicates that the company is becoming more efficient in utilizing its working capital to generate sales revenue.
The significant improvement in working capital turnover suggests that KAR Auction Services Inc is managing its current assets and liabilities more effectively, resulting in a higher frequency of working capital being used and replenished during the operating cycle. This enhanced turnover ratio may signify improved liquidity and operational efficiency within the company.
The company's ability to generate sales revenue relative to its investment in working capital has notably strengthened, reflecting positively on its financial management and operational performance. The consistent increase in working capital turnover is a positive sign for stakeholders as it indicates enhanced efficiency in utilizing resources to drive business growth.
Peer comparison
Dec 31, 2024