KAR Auction Services Inc (KAR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	93,500	110,300	242,400	219,600	225,700	148,700	804,400	134,200	177,600	631,900	621,600	759,000	752,100	1,276,700	968,500	293,100	507,600	508,600	233,000	265,600
Short-term investments	US$ in thousands	0	0	500	300	300	1,000	1,300	4,500	7,500	17,200	39,100	51,000	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	2,478,800	2,508,700	2,646,200	2,666,400	2,643,200	2,820,400	3,547,900	4,481,800	3,009,300	2,756,700	2,683,300	2,656,000	2,250,600	2,354,500	2,009,300	2,018,800	2,517,700	2,516,200	2,668,400	2,945,600
Cash ratio		0.04	0.04	0.09	0.08	0.09	0.05	0.23	0.03	0.06	0.24	0.25	0.30	0.33	0.54	0.48	0.15	0.20	0.20	0.09	0.09

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 eight quarters. In Q4 2023 and Q3 2023, the cash ratio remained constant at 0.08, indicating that for every $1 of current liabilities, the company had $0.08 in cash to cover its short-term obligations.

In Q2 2023, the cash ratio improved to 0.13, reflecting a higher level of liquidity compared to the previous quarters. This suggests that Openlane Inc. had increased its cash holdings relative to its current liabilities during that period.

The cash ratio decreased slightly in Q1 2023 to 0.12, but remained relatively stable compared to the previous quarters. This indicates that the company maintained a consistent level of liquidity to meet its short-term obligations.

Looking back at Q4 2022 and Q3 2022, the cash ratio was 0.12 and 0.08 respectively. In Q2 2022, there was a significant increase in the cash ratio to 0.25, which could indicate a temporary boost in liquidity during that period. However, this was followed by a decrease to 0.06 in Q1 2022, signaling a lower level of cash availability compared to the previous quarter.

Overall, the trend in Openlane Inc.'s cash ratio suggests some variability in the company's liquidity position over the past eight quarters. It is important for investors and analysts to monitor these fluctuations to assess the company's ability to meet its short-term obligations with cash on hand.