KAR Auction Services Inc (KAR)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	-5,200	173,700	127,500	69,200	314,100
Total assets	US$ in thousands	4,726,300	5,119,800	7,450,700	6,798,200	6,581,200
Operating ROA		-0.11%	3.39%	1.71%	1.02%	4.77%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-5,200K ÷ $4,726,300K
= -0.11%

Operating Return on Assets (Operating ROA) is a key financial metric that indicates how efficiently a company is generating operating profits relative to its total assets. A higher operating ROA suggests better utilization of assets to generate operating income.

Analyzing Openlane Inc.'s operating ROA over the past five years reveals fluctuations in the company's operating efficiency. In 2023, Openlane Inc. reported an operating ROA of 5.20%, representing a significant improvement from the previous year's 2.73%. This indicates that the company was able to generate more operating profit for each dollar of assets in 2023.

Comparing the data further, we observe that Openlane Inc. experienced fluctuations in operating ROA over the five-year period. The highest operating ROA was recorded in 2019 at 4.77%, followed by a decrease in the upcoming years, hitting a low of 2.44% in 2020. The subsequent recovery and improvement in 2023 indicate a positive trend in utilizing assets more effectively to generate operating income.

Overall, the trend in Openlane Inc.'s operating ROA demonstrates varying levels of operational efficiency over the past five years. The recent increase in 2023 suggests improved asset utilization and operational performance, which is a positive sign for the company's financial health and profitability. Further analysis and comparison with industry benchmarks would provide more insights into the company's overall performance.