KAR Auction Services Inc (KAR)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	-154,100	-131,300	-149,800	254,200	241,200	209,200	214,000	15,300	66,500	44,300	92,400	48,600	500	37,400	25,600	113,500	188,500	236,000	278,200	315,800
Total stockholders’ equity	US$ in thousands	1,327,000	1,305,600	1,334,400	1,525,900	1,518,300	1,534,400	1,628,900	1,515,900	1,513,000	1,482,700	1,501,300	1,587,500	1,615,800	1,607,000	1,554,500	1,571,800	1,650,200	1,635,800	1,752,600	1,502,500
ROE		-11.61%	-10.06%	-11.23%	16.66%	15.89%	13.63%	13.14%	1.01%	4.40%	2.99%	6.15%	3.06%	0.03%	2.33%	1.65%	7.22%	11.42%	14.43%	15.87%	21.02%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-154,100K ÷ $1,327,000K
= -11.61%

Openlane Inc.'s return on equity (ROE) has fluctuated over the past eight quarters. The ROE has been negative for the most recent four quarters, indicating that the company's net income has not been sufficient to generate a positive return for shareholders. The trend shows a decline in ROE from Q1 2023 to Q4 2023, with the most recent quarter reflecting the lowest ROE at -7.95%. This suggests that the company's ability to generate profits relative to shareholders' equity has deteriorated. Overall, the negative ROE figures raise concerns about Openlane Inc.'s profitability and efficiency in utilizing shareholder funds to generate returns.