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.