KAR Auction Services Inc (KAR)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.32 | 3.49 | 2.38 | 2.48 | 2.44 | 2.47 | 2.52 | 2.41 | 2.40 | 2.47 | 10.00 | 3.68 | 3.53 | 3.48 | 3.44 | 3.33 | 3.14 | 3.22 | 3.12 | 3.82 |
The solvency ratios of KAR Auction Services Inc indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The Debt-to-assets, Debt-to-capital, and Debt-to-equity ratios have all been consistently at 0.00 over the reporting periods, demonstrating that the company has minimal debt obligations in relation to its resources.
The Financial leverage ratio, which measures the extent to which the company is using debt to finance its operations, shows some fluctuations historically. The ratio started at 3.82 at the end of March 2020, decreased to 3.12 by June 2020, and then increased gradually to peak at 10.00 by June 30, 2022. However, the ratio has since decreased significantly and stabilized around a more reasonable level, ranging between 2.32 to 3.68, indicating that the company has effectively managed its leverage and reduced its dependency on debt financing.
Overall, the solvency ratios suggest that KAR Auction Services Inc has a healthy balance sheet with minimal debt levels and a well-controlled leverage position, which bodes well for its long-term financial stability and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.47 | 1.71 | 1.59 | 0.11 | 0.04 | 0.02 | -0.08 | 1.40 | 1.17 | 1.09 | 0.92 | 1.12 | 1.80 | 1.58 | 2.09 | 1.62 | 1.04 | 1.37 | 1.27 | 1.66 |
The interest coverage ratio for KAR Auction Services Inc fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio measures the company's ability to meet its interest obligations with its operating income.
The interest coverage ratio ranged from a low of 0.08 on June 30, 2023, to a high of 2.09 on June 30, 2021. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses. Therefore, KAR Auction Services Inc struggled on June 30, 2023, with its interest obligations exceeding its operating income.
On the other hand, the company had some periods where it performed well in meeting its interest payments, such as on June 30, 2021, when the ratio was at its peak of 2.09. Overall, the trend in recent periods shows fluctuations in the interest coverage ratio, indicating varying levels of financial health in meeting interest payments with operating income. Investors and stakeholders should monitor this ratio closely to assess the company's ability to service its debt obligations.