KAR Auction Services Inc (KAR)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,342,700K
= 0.00
Based on the data provided, KAR Auction Services Inc has maintained a consistent debt-to-equity ratio of 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized any debt to finance its operations during this period, relying solely on equity for funding. A debt-to-equity ratio of 0.00 implies that the company's financial structure consists entirely of equity, which may suggest a conservative approach to financing and a lower financial risk as there is no debt burden to service. It is important to note that while a low debt-to-equity ratio can be viewed positively in terms of financial stability, it may also indicate potentially missed opportunities for leveraging debt to enhance returns or fuel growth.
Peer comparison
Dec 31, 2024