KAR Auction Services Inc (KAR)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-154,100	241,200	66,500	500	188,500
Total assets	US$ in thousands	4,726,300	5,119,800	7,450,700	6,798,200	6,581,200
ROA		-3.26%	4.71%	0.89%	0.01%	2.86%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-154,100K ÷ $4,726,300K
= -3.26%

The return on assets (ROA) for Openlane Inc. has exhibited significant variability over the past five years. In 2019, the company generated a notably high ROA of 2.86%, indicating efficient utilization of its assets to generate profits. However, in the subsequent years, the ROA declined sharply to negative levels, culminating in a low of -3.26% in 2023.

This trend suggests that Openlane Inc. may have faced challenges in effectively leveraging its assets to generate profits in recent years. The negative ROA figures indicate that the company's net income has been insufficient to cover the costs associated with its assets during those periods.

The declining trend in ROA raises concerns about the company's operational efficiency and profitability. Further analysis of the factors contributing to the negative ROA, such as declining sales, increasing expenses, or inefficiencies in asset utilization, would be necessary to determine the root causes of the decreasing performance.

Overall, the fluctuating ROA of Openlane Inc. indicates inconsistent performance in terms of generating profits from its assets, highlighting the need for the company to assess and potentially improve its operational and financial strategies to enhance its return on assets in the future.