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