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.
Peer comparison
Dec 31, 2023