KAR Auction Services Inc (KAR)

Current ratio

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
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
Current ratio 1.11 1.08 1.08 1.15 1.15 1.17 1.17 1.15 1.14 1.14 1.13 1.21 1.13 1.28 1.27 1.33 1.41 1.56 1.62 1.34

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,851,500K ÷ $2,565,500K
= 1.11

The current ratio of KAR Auction Services Inc has shown fluctuations over the past few years, ranging from a low of 1.08 to a high of 1.62. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio of 1 or higher is generally considered acceptable, indicating that the company has sufficient current assets to cover its current liabilities.

Looking at the trend, the current ratio has generally remained above 1, indicating that KAR Auction Services Inc has maintained a healthy liquidity position. However, there were some periods where the current ratio dipped slightly below 1, which may raise concerns about the company's short-term liquidity.

It is important to further investigate the reasons behind the fluctuations in the current ratio to understand if there are any underlying issues affecting the company's liquidity position. Overall, while the current ratio of KAR Auction Services Inc has been relatively stable, monitoring this ratio over time is essential in assessing the company's short-term financial health.