KAR Auction Services Inc (KAR)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 109,900 | 71,900 | 56,200 | -148,300 | -154,100 | -131,300 | -143,500 | 44,900 | 23,800 | -8,200 | -9,700 | 7,200 | 66,500 | 44,300 | 92,400 | 48,600 | 500 | 37,400 | 25,600 | 113,500 |
| Total stockholders’ equity | US$ in thousands | 1,996,400 | 1,327,100 | 1,940,700 | 1,942,700 | 1,939,500 | 1,918,100 | 1,946,900 | 2,138,400 | 2,130,800 | 2,146,900 | 612,500 | 2,117,500 | 2,103,900 | 2,063,100 | 2,071,300 | 2,147,300 | 2,165,600 | 2,147,000 | 2,082,700 | 1,571,800 |
| ROE | 5.50% | 5.42% | 2.90% | -7.63% | -7.95% | -6.85% | -7.37% | 2.10% | 1.12% | -0.38% | -1.58% | 0.34% | 3.16% | 2.15% | 4.46% | 2.26% | 0.02% | 1.74% | 1.23% | 7.22% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $109,900K ÷ $1,996,400K
= 5.50%
The return on equity (ROE) of KAR Auction Services Inc has shown significant fluctuations over the past few years.
From March 31, 2020, to June 30, 2020, there was a notable decline in ROE from 7.22% to 1.23%. Subsequently, there were further decreases in September 2020 and December 2020, reaching a low of 0.02%.
The trend started to reverse in March 2021, with ROE increasing to 2.26% and continuing to improve throughout the year, reaching 4.46% by June 30, 2021. However, the positive momentum was short-lived as there was a decline in ROE by September 2021 to 2.15%.
By December 31, 2021, the ROE improved to 3.16%, but the trend reversed again in the following quarters, with negative ROE values in June 2022, September 2022, December 2022, March 2023, and June 2023.
The company managed to recover from the negative performance, with the ROE turning positive in September 2023 at 5.42%, and continuing to rise to 5.50% by December 31, 2024.
Overall, the analysis of KAR Auction Services Inc's ROE demonstrates a period of volatility and fluctuation, with some periods of recovery and growth following temporary setbacks.
Peer comparison
Dec 31, 2024