KAR Auction Services Inc (KAR)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,726,300 | 4,729,300 | 4,897,400 | 5,147,900 | 5,119,800 | 5,301,300 | 6,126,000 | 7,792,400 | 7,450,700 | 7,170,200 | 7,118,300 | 7,160,200 | 6,798,200 | 6,909,900 | 6,494,000 | 5,999,700 | 6,581,200 | 6,579,700 | 6,377,800 | 6,301,600 |
| 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 |
| Financial leverage ratio | 3.56 | 3.62 | 3.67 | 3.37 | 3.37 | 3.45 | 3.76 | 5.14 | 4.92 | 4.84 | 4.74 | 4.51 | 4.21 | 4.30 | 4.18 | 3.82 | 3.99 | 4.02 | 3.64 | 4.19 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,726,300K ÷ $1,327,000K
= 3.56
Openlane Inc.'s financial leverage ratio has exhibited a fluctuating trend over the past eight quarters. The ratio measures the extent to which the company utilizes debt in its capital structure. In Q1 2022, the ratio stood at 3.68, indicating a high level of financial leverage. However, the ratio decreased in subsequent quarters, reaching a low of 2.40 in Q4 2022.
During Q1 2023, the ratio increased slightly to 2.41 before rising further to 2.52 in Q2 2023. This suggests that the company has been gradually increasing its reliance on debt to finance its operations or growth initiatives. However, this trend reversed in Q3 2023, with the ratio decreasing to 2.47, followed by a further drop to 2.44 in Q4 2023.
Overall, the company's financial leverage ratio has shown variability, indicating potential shifts in its capital structure and financing decisions over time. Investors and stakeholders may monitor this ratio closely to assess the company's risk and financial stability, as higher leverage ratios imply increased financial risk and vulnerability to economic downturns.
Peer comparison
Dec 31, 2023