KAR Auction Services Inc (KAR)
Working capital 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 current assets | US$ in thousands | 2,851,500 | 2,784,800 | 2,774,100 | 2,958,300 | 2,841,900 | 2,940,800 | 3,084,100 | 3,075,000 | 3,022,400 | 3,202,900 | 3,996,500 | 5,505,000 | 3,358,300 | 3,528,200 | 3,414,600 | 3,525,500 | 3,175,200 | 3,674,600 | 3,251,100 | 2,712,900 |
Total current liabilities | US$ in thousands | 2,565,500 | 2,585,300 | 2,576,100 | 2,573,700 | 2,478,800 | 2,508,700 | 2,646,200 | 2,666,400 | 2,643,200 | 2,820,400 | 3,547,900 | 4,565,600 | 2,975,800 | 2,756,700 | 2,683,300 | 2,656,000 | 2,250,600 | 2,354,500 | 2,009,300 | 2,018,800 |
Working capital turnover | 6.12 | 8.46 | 8.36 | 4.27 | 4.53 | 3.76 | 3.66 | 3.84 | 4.01 | 4.43 | 4.10 | 2.17 | 5.89 | 2.89 | 3.13 | 2.44 | 2.37 | 1.76 | 1.96 | 3.94 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,751,500K ÷ ($2,851,500K – $2,565,500K)
= 6.12
The working capital turnover ratio for KAR Auction Services Inc has shown fluctuations over the reported periods. The ratio measures how efficiently the company utilizes its working capital to generate sales revenue. Initially, the ratio was relatively high at around 3.94 in March 31, 2020, indicating that the company efficiently turned over its working capital into revenue. However, this ratio decreased significantly in subsequent periods, reaching a low of 1.76 in September 30, 2020, and then fluctuated around the range of 1.76 to 3.13 until June 30, 2021.
From December 31, 2021, the working capital turnover ratio started to improve consistently, reaching its peak at 8.46 on September 30, 2024. This increase indicates that KAR Auction Services Inc became more efficient in utilizing its working capital to generate sales revenue during this period. However, after September 30, 2024, the ratio decreased slightly to 6.12 by December 31, 2024.
Overall, the trend in the working capital turnover ratio for KAR Auction Services Inc shows both periods of improvement and decline over the reported periods, with a notable increase in efficiency observed from December 31, 2021, to September 30, 2024. Further monitoring of the ratio will be important to assess the company's ongoing efficiency in utilizing its working capital.
Peer comparison
Dec 31, 2024