KAR Auction Services Inc (KAR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 93,500 | 225,700 | 177,600 | 752,100 | 507,600 |
| Short-term investments | US$ in thousands | 0 | 300 | 7,500 | — | — |
| Total current liabilities | US$ in thousands | 2,478,800 | 2,643,200 | 3,009,300 | 2,250,600 | 2,517,700 |
| Cash ratio | 0.04 | 0.09 | 0.06 | 0.33 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($93,500K
+ $0K)
÷ $2,478,800K
= 0.04
The cash ratio of Openlane Inc. has shown fluctuations over the past five years. In 2023, the cash ratio decreased to 0.08 from 0.12 in 2022, indicating a lower ability to cover its current liabilities with its available cash and cash equivalents. This may suggest a potential liquidity challenge for the company in the most recent year.
Comparing the current cash ratio to previous years, we observe a significant decline from 2020 when the ratio was 0.38, representing a substantial decrease in the company's ability to meet its short-term obligations solely through its cash reserves. The cash ratio in 2021 and 2019 was 0.10 and 0.25, respectively, indicating fluctuations in the company's liquidity position over the years.
Overall, the trend in the cash ratio for Openlane Inc. reflects varying levels of liquidity and highlights the importance of closely monitoring the company's cash position to ensure the ability to meet current obligations. A declining cash ratio may indicate a need for improved cash management strategies to enhance liquidity and financial stability.
Peer comparison
Dec 31, 2023