KAR Auction Services Inc (KAR)

Debt-to-equity 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-equity ratio		0.15	0.14	1.22	1.15	1.13

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $202,400K ÷ $1,327,000K
= 0.15

The trend in Openlane Inc.'s debt-to-equity ratio over the past five years reflects fluctuations in the company's capital structure. The ratio has ranged from 1.03 in 2023 to 2.03 in 2019, indicating changes in the proportion of debt and equity financing used by the company.

In 2023, Openlane Inc. had a debt-to-equity ratio of 1.03, which suggests that the company had slightly more debt than equity in its capital structure. This ratio decreased slightly compared to the previous year (1.02 in 2022), indicating a relative decrease in debt compared to equity.

In contrast, the company's debt-to-equity ratio was higher in 2021 (1.69) and 2020 (1.45), indicating a higher level of debt relative to equity during those years. The highest ratio was observed in 2019 at 2.03, signaling a significant reliance on debt financing in that year.

Overall, the trend in Openlane Inc.'s debt-to-equity ratio shows fluctuations in the balance between debt and equity financing over the past five years. It is essential for stakeholders to monitor this ratio to assess the company's financial leverage and risk exposure.