KAR Auction Services Inc (KAR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 10,000 | 370,400 | 207,300 | 117,500 | 415,700 |
| Long-term debt | US$ in thousands | 202,400 | 205,300 | 1,849,700 | 1,853,800 | 1,861,300 |
| Total stockholders’ equity | US$ in thousands | 1,327,000 | 1,518,300 | 1,513,000 | 1,615,800 | 1,650,200 |
| Return on total capital | 0.65% | 21.49% | 6.16% | 3.39% | 11.84% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $10,000K ÷ ($202,400K + $1,327,000K)
= 0.65%
The return on total capital for Openlane Inc. has fluctuated over the past five years. In 2023, the return on total capital was 6.25%, showing an improvement from the previous year's 3.25%. This increase indicates that the company generated a higher return relative to its total capital investment in 2023.
Comparing the 2023 figure to 2021 and 2020, we see that the return on total capital has varied, with 2021 at 3.72% and 2020 at 3.13%. The highest return on total capital within the five-year period was in 2019, at 6.28%.
Overall, the trend in Openlane Inc.'s return on total capital suggests some year-to-year variability, with 2023 representing a notable improvement compared to prior years. It would be important to further analyze the factors driving this performance to assess the company's efficiency in utilizing its total capital to generate returns.
Peer comparison
Dec 31, 2023