KAR Auction Services Inc (KAR)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -154,100 | 241,200 | 66,500 | 500 | 188,500 |
| Revenue | US$ in thousands | 1,645,100 | 1,519,400 | 1,450,600 | 1,326,900 | 2,781,900 |
| Net profit margin | -9.37% | 15.87% | 4.58% | 0.04% | 6.78% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-154,100K ÷ $1,645,100K
= -9.37%
The net profit margin of Openlane Inc. has been fluctuating over the past five years. In 2019, the company achieved a net profit margin of 6.78%, indicating that for every dollar of revenue generated, the company retained $0.0678 as profit. However, this margin decreased significantly in 2020 to -0.96%, implying that the company incurred losses during that period.
Subsequently, there was a slight improvement in the net profit margin in 2021 to 0.88%, but it was still relatively low compared to previous years. In 2022, the margin further improved to -0.76%, but the company still operated at a loss.
Most recently, in 2023, the net profit margin sharply declined to -9.37%, indicating a significant decrease in profitability. This negative margin suggests that the company's expenses exceeded its revenue, resulting in a loss.
Overall, based on the trend observed in the net profit margin, Openlane Inc. has been facing challenges in maintaining profitability, with fluctuations and consecutive years of losses highlighting potential issues in cost management and revenue generation strategies that may require further investigation.
Peer comparison
Dec 31, 2023