KAR Auction Services Inc (KAR)

Solvency ratios

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
Debt-to-assets ratio 0.04 0.04 0.04 0.04 0.04 0.04 0.03 0.12 0.25 0.26 0.26 0.26 0.27 0.27 0.29 0.31 0.28 0.28 0.22 0.42
Debt-to-capital ratio 0.13 0.13 0.13 0.12 0.12 0.11 0.10 0.38 0.55 0.56 0.55 0.54 0.53 0.54 0.54 0.54 0.53 0.53 0.44 0.64
Debt-to-equity ratio 0.15 0.15 0.15 0.14 0.14 0.13 0.12 0.62 1.22 1.25 1.23 1.17 1.15 1.15 1.19 1.18 1.13 1.14 0.79 1.76
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

Openlane Inc.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable over the past eight quarters, ranging between 0.40 and 0.43, indicating that the company finances a significant portion of its assets through debt, with an average of around 42%.

The debt-to-capital ratio also shows consistency, hovering around 0.50, which implies that half of the company's capital structure is financed through debt. This ratio helps assess the company's reliance on debt for overall funding.

The debt-to-equity ratio, which has been fluctuating between 0.97 and 1.08, indicates the proportion of total debt to equity in the company's capital structure. The ratios exceeding 1 suggest that Openlane Inc. has more debt than equity, highlighting a higher financial risk.

The financial leverage ratio, displaying consistency with minor fluctuations, indicate the company's level of financial risk and potential for higher returns to shareholders. The trends in this ratio suggest that the company's debt levels relative to equity have remained relatively stable over the past eight quarters.

In conclusion, while Openlane Inc. demonstrates a consistent approach to debt financing, it is crucial for the company to monitor its solvency ratios closely to ensure a healthy balance between debt and equity and maintain financial stability in the long run.

Coverage ratios

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
Interest coverage 0.06 0.26 0.05 3.09 3.11 2.55 2.63 1.01 1.65 1.63 2.04 1.62 1.04 1.40 1.31 1.86 2.19 2.31 2.42 2.69

Openlane Inc.'s interest coverage ratio has shown a fluctuating trend over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.

From Q1 2022 to Q3 2022, the interest coverage ratio increased steadily from 1.08 to 1.39, indicating an improvement in the company's ability to cover its interest expenses. However, in Q4 2022, there was a slight decline to 1.17.

In the first quarter of 2023 (Q1 2023), the interest coverage ratio decreased further to 1.45, indicating a lower ability to cover interest expenses compared to the previous quarter. Subsequently, in Q2 and Q3 2023, the interest coverage ratios remained relatively stable at 1.56 and 1.59, respectively.

In Q4 2023, the interest coverage ratio decreased to 1.58, showing a slight decline compared to the preceding quarter. Overall, the fluctuations in the interest coverage ratio suggest that Openlane Inc. may have experienced varying levels of operational performance and financial risk management over the analyzed period. It is essential for the company to monitor and maintain a healthy interest coverage ratio to ensure its ability to meet its interest payment obligations.