KAR Auction Services Inc (KAR)

Operating 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
Operating income (ttm)	US$ in thousands	277,900	256,300	249,600	-900	-5,200	-1,100	-17,600	199,200	147,500	131,500	124,800	169,100	210,600	179,000	222,100	150,800	136,400	184,100	183,400	278,700
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
Operating profit margin		15.87%	15.19%	15.08%	-0.05%	-0.32%	-0.07%	-1.10%	12.68%	9.71%	7.75%	6.79%	8.29%	9.35%	8.02%	9.70%	7.10%	6.23%	7.90%	7.52%	10.18%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $277,900K ÷ $1,751,500K
= 15.87%

The operating profit margin of KAR Auction Services Inc has shown fluctuations over the analyzed period. The margin started at 10.18% in March 2020, declined to 6.23% by December 2020, and then gradually improved to reach 9.35% by December 2021. Thereafter, the margin fluctuated between 6.79% and 12.68% until June 2023, when it took a sharp decline to -1.10%. This negative trend continued with margins of -0.07%, -0.32%, and -0.05% in the subsequent quarters. However, from June 2024 onwards, there was a significant rebound in the operating profit margin, reaching 15.87% by December 2024. These fluctuations may indicate varying levels of operational efficiency, cost management, and profitability for KAR Auction Services Inc during the analyzed period. It would be important for stakeholders to further investigate the reasons behind these fluctuations to assess the company's financial performance and prospects accurately.