KAR Auction Services Inc (KAR)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	109,900	-154,100	28,600	66,500	500
Total assets	US$ in thousands	4,622,300	4,726,300	5,119,800	7,417,200	6,798,200
ROA		2.38%	-3.26%	0.56%	0.90%	0.01%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $109,900K ÷ $4,622,300K
= 2.38%

Based on the provided data, we can observe fluctuations in KAR Auction Services Inc's return on assets (ROA) over the past five years.

- As of December 31, 2020, the ROA was 0.01%, indicating minimal profitability in relation to the company's assets.
- By December 31, 2021, there was a significant improvement in ROA to 0.90%, reflecting increased efficiency in generating profit from its assets.
- In the following year, by December 31, 2022, the ROA slightly decreased to 0.56%, but still remained relatively healthy compared to the previous years.
- However, by December 31, 2023, there was a sharp decline in ROA to -3.26%, indicating that the company incurred losses relative to its assets during that period.
- Finally, by December 31, 2024, ROA rebounded significantly to 2.38%, showing a strong recovery and improved profitability in utilizing its assets effectively.

These fluctuations suggest that KAR Auction Services Inc had varying degrees of success in generating returns from its assets over the past five years, with a notable improvement in recent years following a challenging period in 2023.