KAR Auction Services Inc (KAR)

Net profit margin

		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
Net income (ttm)	US$ in thousands	109,900	71,900	56,200	-148,300	-154,100	-131,300	-143,500	44,900	23,800	-8,200	-9,700	7,200	66,500	44,300	92,400	48,600	500	37,400	25,600	113,500
Revenue (ttm)	US$ in thousands	1,751,500	1,687,800	1,655,700	1,640,800	1,645,100	1,626,600	1,603,300	1,570,600	1,519,400	1,696,000	1,838,200	2,039,400	2,251,600	2,231,800	2,290,200	2,123,800	2,187,700	2,329,400	2,437,700	2,737,800
Net profit margin		6.27%	4.26%	3.39%	-9.04%	-9.37%	-8.07%	-8.95%	2.86%	1.57%	-0.48%	-0.53%	0.35%	2.95%	1.98%	4.03%	2.29%	0.02%	1.61%	1.05%	4.15%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $109,900K ÷ $1,751,500K
= 6.27%

The net profit margin of KAR Auction Services Inc has fluctuated over the periods shown in the data. The net profit margin decreased from 4.15% in March 2020 to 0.02% in December 2020, indicating a decline in profitability. However, there was a partial recovery in the subsequent periods with the net profit margin reaching 4.03% in June 2021. Thereafter, the net profit margin exhibited volatility, with negative values in some quarters, implying challenges in maintaining profitability. It rebounded in December 2024 to 6.27%, showing an improvement in the company's profitability compared to the previous periods. Overall, the erratic nature of the net profit margin suggests that KAR Auction Services Inc experienced periods of both strength and weakness in generating profits relative to its revenue.