KAR Auction Services Inc (KAR)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,342,700 | 1,939,500 | 2,130,800 | 2,103,900 | 2,165,600 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,342,700K)
= 0.00
The debt-to-capital ratio of KAR Auction Services Inc has remained consistently low, at 0.00%, over the past five years, from 2020 to 2024. This indicates that the company has not utilized debt significantly to finance its operations or growth, and the majority of its capital structure is composed of equity. A low debt-to-capital ratio is generally seen as a positive sign, as it suggests lower financial risk and greater financial stability for the company. However, it is important to consider the company's overall financial strategy and goals when evaluating this ratio in conjunction with other financial metrics.
Peer comparison
Dec 31, 2024