KAR Auction Services Inc (KAR)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 143,000 | 132,100 | 128,600 | 150,900 | 93,500 | 110,300 | 242,400 | 219,600 | 225,700 | 148,700 | 804,400 | 134,200 | 190,000 | 631,900 | 621,600 | 759,000 | 752,100 | 1,276,700 | 968,500 | 293,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.06 | 0.05 | 0.05 | 0.06 | 0.04 | 0.04 | 0.09 | 0.08 | 0.09 | 0.05 | 0.23 | 0.03 | 0.06 | 0.23 | 0.23 | 0.29 | 0.33 | 0.54 | 0.48 | 0.15 |
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 shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
Initially, the quick ratio was low at 0.15 on March 31, 2020, indicating the company had limited liquid assets to cover its short-term liabilities. Subsequently, there was an improvement in liquidity as the quick ratio increased to 0.54 on September 30, 2020, showing better short-term liquidity management. However, the ratio declined to 0.29 by March 31, 2021, and further decreased to 0.06 by December 31, 2021.
There was a notable recovery in liquidity with the quick ratio rising to 0.23 by June 30, 2022. The ratio remained steady at this level for the subsequent quarters, except for a slight increase to 0.09 by June 30, 2023. Notably, the quick ratio declined to 0.04 on March 31, 2024, indicating a decrease in short-term liquidity.
Overall, the trend in KAR Auction Services Inc's quick ratio reflects some fluctuations in its ability to cover short-term obligations with liquid assets. The management should continue to monitor and improve liquidity levels to ensure the company can meet its short-term financial commitments effectively.
Peer comparison
Dec 31, 2024