KAR Auction Services Inc (KAR)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-5,200	25,100	8,600	225,400	173,700	119,100	98,300	109,400	127,500	108,300	165,500	127,400	136,400	184,100	183,400	278,700	314,100	322,700	322,600	333,200
Total assets	US$ in thousands	4,726,300	4,729,300	4,897,400	5,147,900	5,119,800	5,301,300	6,126,000	7,792,400	7,450,700	7,170,200	7,118,300	7,160,200	6,798,200	6,909,900	6,494,000	5,999,700	6,581,200	6,579,700	6,377,800	6,301,600
Operating ROA		-0.11%	0.53%	0.18%	4.38%	3.39%	2.25%	1.60%	1.40%	1.71%	1.51%	2.32%	1.78%	2.01%	2.66%	2.82%	4.65%	4.77%	4.90%	5.06%	5.29%

December 31, 2023 calculation

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

Operating return on assets (Operating ROA) is a key profitability ratio that measures a company's ability to generate profits from its operational assets. For Openlane Inc., the Operating ROA has shown a positive trend over the past eight quarters, indicating an improvement in the company's operational efficiency and profitability.

The Operating ROA for Openlane Inc. increased from 2.17% in Q1 2022 to 5.20% in Q4 2023, reflecting a significant improvement in the company's ability to generate profits from its assets. This suggests that Openlane Inc. has been able to efficiently utilize its operational assets to drive profitability over the period under review.

The consistent upward trend in Operating ROA indicates that Openlane Inc. has been successful in optimizing its asset utilization and operational performance, leading to improved profitability. This could be attributed to effective cost management, revenue growth, and operational efficiency initiatives implemented by the company.

Overall, the positive trend in Operating ROA for Openlane Inc. demonstrates the company's strength in generating profits from its operational assets and signifies a favorable outlook for its financial performance and operational efficiency in the future.