KAR Auction Services Inc (KAR)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	109,900	-154,100	28,600	66,500	500
Revenue	US$ in thousands	1,788,500	1,645,100	1,519,400	2,251,600	2,187,700
Net profit margin		6.14%	-9.37%	1.88%	2.95%	0.02%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $109,900K ÷ $1,788,500K
= 6.14%

Based on the data provided, the net profit margin of KAR Auction Services Inc has shown significant fluctuations over the years. In December 2020, the net profit margin was a modest 0.02%, indicating that the company was able to convert 0.02% of its revenue into net profit.

By December 2021, the net profit margin notably improved to 2.95%, suggesting that the company's profitability increased significantly in that year. However, in the following year (December 2022), the net profit margin dropped to 1.88%, indicating a slight decline in profitability compared to the previous year.

The most significant change occurred in December 2023, where the net profit margin turned negative at -9.37%. This negative figure implies that the company incurred a net loss during that period, which could be a cause for concern.

Fortunately, by December 2024, the net profit margin recovered and increased substantially to 6.14%, indicating a strong performance in converting revenue into profit for that year.

Overall, the fluctuation in KAR Auction Services Inc's net profit margin over the years suggests varying levels of profitability and financial performance, highlighting the importance of closely monitoring and analyzing financial ratios to assess the company's operational efficiency and overall health.