KAR Auction Services Inc (KAR)

Quick 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	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	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	2,573,800	2,698,100	2,712,000	2,725,700	2,665,800	2,953,500	3,085,800	3,168,100	3,033,000	2,733,000	2,634,100	2,618,200	2,256,200	2,216,900	2,108,600	2,173,900	2,557,700	2,605,800	2,648,400	2,937,300
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
Quick ratio		1.08	1.12	1.12	1.10	1.09	1.10	1.10	0.74	1.07	1.23	1.23	1.29	1.34	1.48	1.53	1.22	1.22	1.24	1.08	1.09

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($93,500K + $0K + $2,573,800K) ÷ $2,478,800K
= 1.08

The quick ratio of Openlane Inc. has shown some variability over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.

In Q4 2023, the quick ratio stood at 0.20, indicating that the company had $0.20 in liquid assets available to cover each $1 of current liabilities. This ratio improved slightly in Q3 2023 to 0.22 and remained stable in Q2 2023 at 0.25.

Notably, the quick ratio was also at 0.25 in Q1 2023, showing consistency in the company's ability to cover its short-term liabilities in the first half of the year.

Comparing these figures to previous quarters, the quick ratio was similar in Q4 2022 and Q3 2022 at 0.22 and 0.23, respectively. However, there was a notable improvement in Q2 2022 when the quick ratio increased to 0.37. In contrast, Q1 2022 had the lowest quick ratio of 0.15 among the listed periods.

Overall, while the quick ratio of Openlane Inc. has fluctuated over the analyzed periods, the company has generally shown an ability to cover its short-term obligations using its liquid assets. However, stakeholders should further investigate the reasons behind the fluctuations and assess the company's overall liquidity position in conjunction with other financial metrics.