KAR Auction Services Inc (KAR)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	2,841,900	3,022,400	3,391,800	3,175,200	3,244,500
Total current liabilities	US$ in thousands	2,478,800	2,643,200	3,009,300	2,250,600	2,517,700
Current ratio		1.15	1.14	1.13	1.41	1.29

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,841,900K ÷ $2,478,800K
= 1.15

The current ratio for Openlane Inc. has shown some fluctuations over the past five years. As of December 31, 2023, the current ratio stands at 1.15, indicating that the company has $1.15 in current assets for every $1 in current liabilities.

Comparing this to previous years, we see a slight increase from the ratio of 1.14 in 2022 and 1.13 in 2021. However, there has been a notable decline from the higher ratios of 1.41 in 2020 and 1.29 in 2019.

A current ratio above 1 generally suggests that a company is able to meet its short-term obligations using its current assets. While Openlane Inc. has maintained a current ratio above 1 in the recent years, the decreasing trend raises some concern about the company's ability to cover its short-term liabilities in the most recent period.

It is essential to further investigate the components of current assets and liabilities to better understand the factors influencing the current ratio and ensure that Openlane Inc. has sufficient liquidity to meet its short-term financial obligations effectively.