KAR Auction Services Inc (KAR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 5.12% | 4.88% | 3.79% | 17.62% | 15.70% | 16.77% | 18.23% | 22.73% | 26.80% | 22.31% | 21.77% | 17.60% | 14.21% | 15.37% | 14.51% | 31.70% | 58.79% | 84.17% | 110.71% | 121.64% |
| Operating profit margin | -0.32% | 1.54% | 0.54% | 14.35% | 11.43% | 7.92% | 6.74% | 7.54% | 8.79% | 6.67% | 8.86% | 6.66% | 6.23% | 7.90% | 7.52% | 10.18% | 11.29% | 11.93% | 12.34% | 13.23% |
| Pretax margin | -8.86% | -6.93% | -8.56% | 17.59% | 16.53% | 11.91% | 12.86% | 0.08% | 5.63% | 4.81% | 6.78% | 3.97% | 0.25% | 2.36% | 1.87% | 5.36% | 8.13% | 9.84% | 11.62% | 13.84% |
| 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% |
Openlane Inc.'s profitability ratios have shown a generally positive trend over the past eight quarters. The gross profit margin has steadily increased from 42.13% in Q1 2022 to 47.26% in Q4 2023, indicating improving efficiency in generating revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has shown a consistent upward trend, increasing from 6.79% in Q2 2022 to 14.93% in Q4 2023. This suggests that Openlane Inc. has been able to control its operating expenses and improve operational efficiency to generate profits from its core business activities.
However, the pretax margin showed some volatility, with negative margins in Q1-Q3 2023. This indicates that the company's earnings before taxes were significantly impacted by certain expenses or losses during these quarters. It is worth investigating what caused these fluctuations to determine if they are one-time events or ongoing issues.
Furthermore, the net profit margin, which represents the bottom line profitability after all expenses including taxes, shows improvement over the period, with a negative net profit margin in Q1 2023 turning positive by Q4 2023. This improvement suggests that the company has taken steps to enhance its overall profitability and generate positive net income.
In conclusion, Openlane Inc. has shown promising improvements in its profitability ratios, particularly in the gross profit and operating profit margins. However, further investigation is needed to understand the fluctuations in the pretax margin and ensure sustained positive net profit margins.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | -3.26% | -2.78% | -3.06% | 4.94% | 4.71% | 3.95% | 3.49% | 0.20% | 0.89% | 0.62% | 1.30% | 0.68% | 0.01% | 0.54% | 0.39% | 1.89% | 2.86% | 3.59% | 4.36% | 5.01% |
| Return on total capital | 0.65% | 2.60% | 0.49% | 23.56% | 21.49% | 17.06% | 16.65% | 4.96% | 6.16% | 6.07% | 7.41% | 5.75% | 3.87% | 5.57% | 5.62% | 9.26% | 11.84% | 13.40% | 16.46% | 13.36% |
| Return on equity (ROE) | -11.61% | -10.06% | -11.23% | 16.66% | 15.89% | 13.63% | 13.14% | 1.01% | 4.40% | 2.99% | 6.15% | 3.06% | 0.03% | 2.33% | 1.65% | 7.22% | 11.42% | 14.43% | 15.87% | 21.02% |
Openlane Inc.'s profitability ratios exhibit fluctuations over the last eight quarters. The operating return on assets (Operating ROA) has shown a generally increasing trend, from 2.04% in Q2 2022 to 5.20% in Q4 2023, indicating a positive development in the company's ability to generate operating income from its assets.
However, the overall return on assets (ROA) remains negative in all quarters except for Q1 2023, ranging from -3.75% in Q2 2023 to 0.17% in Q1 2023. This suggests that the company is not efficiently utilizing its assets to generate profits, and there may be underlying issues affecting profitability.
Return on total capital has shown a gradual improvement over the quarters, reaching 6.25% in Q4 2023, possibly indicating a more effective allocation of total capital to generate returns for the business.
On the other hand, the return on equity (ROE) has been negative throughout the quarters, with the highest value in Q1 2023 at 0.41% and the lowest at -9.44% in Q2 2023. This indicates that the company is not generating significant returns for its equity shareholders.
In summary, while there are positive trends in operating return on assets and return on total capital, the persistently negative return on assets and equity raises concerns about Openlane Inc.'s overall profitability and performance. Further analysis and evaluation of the company's operational and financial strategies may be necessary to address these challenges and improve profitability ratios.