KAR Auction Services Inc (KAR)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	202,400	205,300	1,849,700	1,853,800	1,861,300
Total assets	US$ in thousands	4,726,300	5,119,800	7,450,700	6,798,200	6,581,200
Debt-to-assets ratio		0.04	0.04	0.25	0.27	0.28

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $202,400K ÷ $4,726,300K
= 0.04

The debt-to-assets ratio of Openlane Inc. has shown some fluctuations over the past five years. The ratio indicates the proportion of the company's assets financed by debt. A decreasing trend in the ratio from 0.51 in 2019 to 0.42 in 2023 suggests that the company has been relying less on debt to finance its assets.

In 2023, the ratio remained stable at 0.42 compared to the previous year, possibly indicating a consistent debt management strategy. This indicates that Openlane Inc. maintains a healthy balance between debt and assets, which may reduce its financial risk and enhance its financial stability.

Overall, the long-term trend suggests a gradual improvement in the company's debt-to-assets ratio, which could reflect prudent financial management decisions to reduce leverage and strengthen the company's financial position.