KAR Auction Services Inc (KAR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,327,000	1,518,300	1,513,000	1,615,800	1,650,200
Debt-to-capital ratio		0.13	0.12	0.55	0.53	0.53

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $202,400K ÷ ($202,400K + $1,327,000K)
= 0.13

The debt-to-capital ratio for Openlane Inc. has been relatively stable over the past five years, ranging from 0.50 to 0.67. This ratio indicates the proportion of the company's capital structure that is funded by debt. A higher ratio suggests a greater reliance on debt financing, which can increase financial risk but also potentially enhance returns.

In 2023, the debt-to-capital ratio stood at 0.51, a slight increase from the previous year's ratio of 0.50. This indicates that Openlane Inc. utilized slightly more debt in its capital structure compared to the prior year. However, it is important to note that the ratio remains within a reasonable range, suggesting a balanced approach to financing operations.

Looking back over the five-year period, there seems to have been fluctuations in the debt-to-capital ratio, potentially reflecting changes in the company's financing strategy or overall financial performance. Despite these fluctuations, the ratios have generally remained below 1, indicating that Openlane Inc. has not been overly reliant on debt for its capital needs.

Overall, the trend in Openlane Inc.'s debt-to-capital ratio suggests a cautious approach to debt management, with a relatively stable capital structure over the years. It is important for stakeholders to monitor this ratio along with other financial metrics to assess the company's overall financial health and risk profile.