KAR Auction Services Inc (KAR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,342,700 | 1,939,500 | 2,130,800 | 2,103,900 | 2,165,600 |
| ROE | 8.19% | -7.95% | 1.34% | 3.16% | 0.02% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $109,900K ÷ $1,342,700K
= 8.19%
Based on the data provided, KAR Auction Services Inc's return on equity (ROE) has shown fluctuations over the years:
1. In December 2020, the ROE was 0.02%, indicating a very low return on equity for the company.
2. By December 2021, the ROE improved significantly to 3.16%, reflecting a better utilization of shareholder equity to generate profits.
3. However, in December 2022, the ROE dropped to 1.34%, suggesting a slight decline in the efficiency of the company in generating returns for its shareholders.
4. The ROE took a significant downturn in December 2023, plummeting to -7.95%. This negative ROE indicates that the company may have incurred a loss, resulting in a negative return for shareholders.
5. By December 2024, the ROE rebounded to 8.19%, showing a strong recovery and profitability for the company, with an efficient utilization of equity to generate returns.
Overall, KAR Auction Services Inc's ROE has shown variability, indicating fluctuations in the company's profitability and efficiency in utilizing shareholder equity to generate returns over the years. It is essential for investors to closely monitor these fluctuations to assess the company's performance and financial health.
Peer comparison
Dec 31, 2024