KAR Auction Services Inc (KAR)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	10,000	39,200	7,600	408,100	370,400	295,000	303,000	121,700	207,300	202,300	248,600	197,700	134,300	192,900	191,800	317,700	415,700	468,700	517,500	555,100
Long-term debt	US$ in thousands	202,400	201,400	201,000	206,000	205,300	194,700	190,700	939,800	1,849,700	1,850,700	1,851,800	1,852,800	1,853,800	1,854,800	1,856,900	1,860,100	1,861,300	1,863,000	1,390,800	2,650,900
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
Return on total capital		0.65%	2.60%	0.49%	23.56%	21.49%	17.06%	16.65%	4.96%	6.16%	6.07%	7.41%	5.75%	3.87%	5.57%	5.62%	9.26%	11.84%	13.40%	16.46%	13.36%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $10,000K ÷ ($202,400K + $1,327,000K)
= 0.65%

Openlane Inc.'s return on total capital has shown a consistent growth trend over the past eight quarters. Starting at 2.84% in Q1 2022, it has steadily increased to 6.25% in Q4 2023. This improvement indicates that the company has been effectively utilizing its total capital to generate profits. The upward trajectory suggests that Openlane Inc. has been efficient in deploying its resources to enhance profitability and create shareholder value. This sustained growth in return on total capital reflects positively on the company's financial management and operational efficiency.