KAR Auction Services Inc (KAR)

Net profit margin

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
Net income (ttm) US$ in thousands -154,100 -131,300 -149,800 254,200 241,200 209,200 214,000 15,300 66,500 44,300 92,400 48,600 500 37,400 25,600 113,500 188,500 236,000 278,200 315,800
Revenue (ttm) US$ in thousands 1,645,100 1,626,600 1,603,300 1,570,600 1,519,400 1,504,300 1,458,400 1,450,200 1,450,600 1,622,500 1,869,000 1,912,000 2,187,700 2,329,400 2,437,700 2,737,800 2,781,900 2,704,400 2,614,900 2,519,200
Net profit margin -9.37% -8.07% -9.34% 16.18% 15.87% 13.91% 14.67% 1.06% 4.58% 2.73% 4.94% 2.54% 0.02% 1.61% 1.05% 4.15% 6.78% 8.73% 10.64% 12.54%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-154,100K ÷ $1,645,100K
= -9.37%

Net profit margin is a key profitability ratio that indicates the percentage of revenue that translates into profit after all expenses have been accounted for. Analyzing the net profit margin of Openlane Inc. over the past eight quarters reveals fluctuations in the company's profit generation efficiency.

The data shows a negative net profit margin for the last four quarters, with values ranging from -9.37% to -11.46%. This indicates that the company's expenses have exceeded its revenue in these periods, resulting in net losses. The largest negative net profit margin was recorded in Q2 2023 at -11.46%, indicating a significant loss relative to revenue.

However, there was a positive net profit margin of 0.55% in Q1 2023, suggesting that the company was able to generate a modest profit during that period. This positive margin may be attributed to effective cost management or revenue growth surpassing expenses.

Comparing the recent quarters with the same period in the previous year, the net profit margin has shown varying trends. While Q4 2022 had a slightly negative net profit margin of -0.76%, it improved from the previous year's Q4 2023 net profit margin of -9.37%. This improvement suggests some progress in cost control or revenue generation over the year.

Overall, the negative trend in the net profit margin for the last four quarters raises concerns about Openlane Inc.'s profitability and operational efficiency. Further analysis of the company's financial and operational strategies will be essential to address the challenges reflected in the net profit margin performance.


Peer comparison

Dec 31, 2023