KAR Auction Services Inc (KAR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,622,300 | 4,726,300 | 5,119,800 | 7,417,200 | 6,798,200 |
| Total stockholders’ equity | US$ in thousands | 1,342,700 | 1,939,500 | 2,130,800 | 2,103,900 | 2,165,600 |
| Financial leverage ratio | 3.44 | 2.44 | 2.40 | 3.53 | 3.14 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,622,300K ÷ $1,342,700K
= 3.44
The financial leverage ratio of KAR Auction Services Inc has shown fluctuations over the years. It was 3.14 at the end of December 31, 2020, indicating that the company had a higher level of debt relative to its equity.
By the end of December 31, 2021, the ratio increased to 3.53, suggesting an even higher level of financial leverage. However, by December 31, 2022, the ratio decreased significantly to 2.40, indicating a reduction in the company's reliance on debt financing.
This trend continued into December 31, 2023, with a slightly increased ratio of 2.44, still indicating a relatively lower level of financial leverage compared to the previous years.
However, by December 31, 2024, the ratio increased again to 3.44, showing a return to a higher level of financial leverage compared to the previous year.
Overall, the company's financial leverage ratio has shown variability, with periods of higher and lower levels of debt relative to equity. It is important for investors and stakeholders to monitor these fluctuations to assess the company's risk and financial health.
Peer comparison
Dec 31, 2024