KAR Auction Services Inc (KAR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.11 | 1.15 | 1.14 | 1.13 | 1.41 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,851,500K ÷ $2,565,500K
= 1.11
The current ratio for KAR Auction Services Inc has shown a slight decrease from 1.41 in December 31, 2020, to 1.13 in December 31, 2021. However, it has since stabilized around 1.14 in 2022, 1.15 in 2023, and 1.11 in 2024. A current ratio above 1 indicates that the company's current assets are sufficient to cover its current liabilities. While the decreasing trend from 2020 to 2021 may have raised some concerns, the subsequent stability suggests that KAR Auction Services Inc has been managing its short-term obligations effectively overall. It is important to continue monitoring the current ratio to ensure the company maintains sufficient liquidity to meet its upcoming financial obligations.
Peer comparison
Dec 31, 2024