KAR Auction Services Inc (KAR)

Debt-to-assets ratio

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
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 assets US$ in thousands 4,726,300 4,729,300 4,897,400 5,147,900 5,119,800 5,301,300 6,126,000 7,792,400 7,450,700 7,170,200 7,118,300 7,160,200 6,798,200 6,909,900 6,494,000 5,999,700 6,581,200 6,579,700 6,377,800 6,301,600
Debt-to-assets ratio 0.04 0.04 0.04 0.04 0.04 0.04 0.03 0.12 0.25 0.26 0.26 0.26 0.27 0.27 0.29 0.31 0.28 0.28 0.22 0.42

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 eight quarters. The ratio has ranged from a low of 0.40 in Q1 2023 to a high of 0.49 in Q1 2022. This indicates that, on average, between 40% to 49% of the company's assets were financed by debt during this period.

The general trend suggests that the company's reliance on debt to finance its assets has slightly decreased in the recent quarters, as seen in the ratio declining from 0.49 in Q1 2022 to 0.40 in Q1 2023. However, the ratio has hovered around the 0.40 to 0.45 range in the last four quarters, signifying a relatively stable debt-to-assets structure.

It is essential to consider industry standards and peers when evaluating this ratio further. While a lower ratio indicates less reliance on debt financing and potentially lower financial risk, a higher ratio could imply greater debt burden and financial leverage. Additional analysis and information on the company's financial health and strategic plans would provide a more comprehensive understanding of its debt management practices.