KAR Auction Services Inc (KAR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,327,000	1,305,600	1,334,400	1,525,900	1,518,300	1,534,400	1,628,900	1,515,900	1,513,000	1,482,700	1,501,300	1,587,500	1,615,800	1,607,000	1,554,500	1,571,800	1,650,200	1,635,800	1,752,600	1,502,500
Debt-to-capital ratio		0.13	0.13	0.13	0.12	0.12	0.11	0.10	0.38	0.55	0.56	0.55	0.54	0.53	0.54	0.54	0.54	0.53	0.53	0.44	0.64

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 of Openlane Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the ratio stood at 0.51, which was slightly higher compared to the previous quarter but still in line with historical figures. The company maintained a relatively stable debt-to-capital ratio range between 0.49 and 0.55 throughout 2022 and 2023, indicating a consistent capital structure mix of debt and equity.

While the ratio increased to 0.64 in Q1 2022, signaling a higher proportion of debt relative to total capital, Openlane Inc. managed to bring it down to more favorable levels in subsequent quarters. Overall, the debt-to-capital ratio has remained within a reasonable range, suggesting that the company has been managing its debt levels effectively and maintaining a balanced capital structure. Further analysis incorporating industry benchmarks and trend analysis would provide a more comprehensive assessment of Openlane Inc.'s debt management practices.