KAR Auction Services Inc (KAR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,327,000 | 1,518,300 | 1,513,000 | 1,615,800 | 1,650,200 |
| ROE | -11.61% | 15.89% | 4.40% | 0.03% | 11.42% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-154,100K ÷ $1,327,000K
= -11.61%
Openlane Inc.'s return on equity (ROE) has shown a declining trend over the past five years, with a notable negative ROE of -7.95% in 2023. This signifies that the company generated a negative return for its shareholders relative to their equity investment in that year. The preceding year, 2022, also displayed a negative ROE of -0.54%.
The company's ROE was slightly positive at 0.95% in 2021, indicating a minimal return for shareholders. Prior to this, in 2020, Openlane Inc. experienced a negative ROE of -0.97%, demonstrating a decrease in efficiency in generating profits from shareholders' equity. However, in 2019, the company's ROE stood at a considerably higher level of 11.42%, suggesting that Openlane Inc. was successful in utilizing equity to generate profits for shareholders in that particular year.
Overall, the fluctuating and negative ROE figures in recent years imply that Openlane Inc. may be facing challenges in efficiently utilizing shareholders' equity to generate profits, potentially indicating operational or financial difficulties within the company. Further analysis of the company's financial performance and strategic decisions may be necessary to address the declining ROE trend observed.
Peer comparison
Dec 31, 2023