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.