KAR Auction Services Inc (KAR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 143,000 | 93,500 | 225,700 | 190,000 | 752,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,565,500 | 2,478,800 | 2,643,200 | 2,975,800 | 2,250,600 |
| Quick ratio | 0.06 | 0.04 | 0.09 | 0.06 | 0.33 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($143,000K
+ $—K
+ $—K)
÷ $2,565,500K
= 0.06
The quick ratio of KAR Auction Services Inc has fluctuated over the past five years. Starting at 0.33 in December 31, 2020, it decreased significantly to 0.06 by December 31, 2021, indicating a potential liquidity concern. Despite a slight improvement to 0.09 by December 31, 2022, the ratio dropped again to 0.04 by December 31, 2023. However, by the end of December 31, 2024, the quick ratio recovered slightly to 0.06, although it remains relatively low compared to the initial period. These fluctuations suggest that the company may be facing challenges in meeting its short-term financial obligations with its quick assets. Monitoring this ratio closely is advisable to assess the company's liquidity position accurately.
Peer comparison
Dec 31, 2024