KAR Auction Services Inc (KAR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 42.64% | 42.82% | 43.89% | 46.27% | 47.26% | 46.83% | 46.46% | 46.03% | 45.09% | 43.66% | 42.39% | 42.13% | 42.27% | 41.66% | 42.42% | 42.53% | 41.27% | 41.86% | 41.11% | 40.91% |
| 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% |
| Pretax margin | 9.02% | 6.52% | 5.68% | -8.37% | -8.91% | -6.63% | -7.87% | 4.57% | 2.54% | -0.74% | -1.20% | 0.68% | 4.51% | 3.24% | 5.79% | 3.54% | 0.25% | 2.17% | 1.64% | 4.13% |
| 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% |
KAR Auction Services Inc has shown a positive trend in its profitability ratios over the past few years. The gross profit margin has been steadily increasing, reaching its peak at 47.26% as of December 31, 2023. This indicates that the company is effectively managing its cost of sales and generating a higher percentage of revenue as gross profit.
The operating profit margin has been more volatile, with periods of both positive and negative margins. However, it has generally improved over time, with the most recent figure standing at 15.87% as of December 31, 2024. This suggests that the company is becoming more efficient in its operations and controlling its operating expenses effectively.
The pretax margin also shows a fluctuating pattern, with periods of profitability followed by losses. Despite this, the margin has shown an overall positive trend, with a significant increase to 9.02% as of December 31, 2024. This indicates that the company is improving its pre-tax earnings relative to its total revenue.
Lastly, the net profit margin, which reflects the company's bottom line profitability, has also exhibited fluctuations but has improved over time. As of December 31, 2024, the net profit margin stood at 6.27%, indicating that KAR Auction Services Inc is effectively managing its expenses and generating a respectable level of net income relative to its revenue.
Overall, the analysis of KAR Auction Services Inc's profitability ratios suggests that the company has made progress in enhancing its profitability over the years, with improvements in gross, operating, pre-tax, and net profit margins.
Return on investment
| 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 return on assets (Operating ROA) | 6.01% | 5.54% | 5.41% | -0.02% | -0.11% | -0.02% | -0.36% | 3.87% | 2.88% | 2.48% | 2.04% | 2.17% | 2.84% | 2.50% | 3.12% | 2.11% | 2.01% | 2.66% | 2.82% | 4.65% |
| Return on assets (ROA) | 2.38% | 1.55% | 1.22% | -3.08% | -3.26% | -2.78% | -2.93% | 0.87% | 0.46% | -0.15% | -0.16% | 0.09% | 0.90% | 0.62% | 1.30% | 0.68% | 0.01% | 0.54% | 0.39% | 1.89% |
| Return on total capital | 14.98% | 19.53% | 12.74% | 0.89% | 0.32% | 0.14% | -0.63% | 8.62% | 6.56% | 5.91% | 17.45% | 6.44% | 10.84% | 9.56% | 12.30% | 9.17% | 6.20% | 8.78% | 8.95% | 18.07% |
| Return on equity (ROE) | 5.50% | 5.42% | 2.90% | -7.63% | -7.95% | -6.85% | -7.37% | 2.10% | 1.12% | -0.38% | -1.58% | 0.34% | 3.16% | 2.15% | 4.46% | 2.26% | 0.02% | 1.74% | 1.23% | 7.22% |
KAR Auction Services Inc's profitability ratios fluctuated over the periods analyzed. The Operating Return on Assets (Operating ROA) ranged from a low of -0.36% in June 2023 to a high of 6.01% in December 2024. Meanwhile, the Return on Assets (ROA) had a similar pattern, with a low of -3.26% in December 2023 and a peak of 2.38% in December 2024.
The Return on Total Capital saw variations as well, with the lowest return of -0.63% in June 2023 and the highest return of 19.53% in September 2024. On the other hand, the Return on Equity (ROE) had its lowest point at -7.95% in December 2023 and its highest at 5.50% in December 2024.
Overall, it is important for KAR Auction Services Inc to closely monitor and manage its profitability ratios, especially during periods of negative returns, to ensure sustainable growth and value creation for its shareholders.