Name: Fixed Asset Turnover

Definition: Fixed asset turnover shows how well the company’s long-term physical assets — factories, equipment, property — are being used to generate sales. A high ratio means the company’s facilities are productive and efficient. A low ratio might signal underused assets or over-investment in equipment that isn’t driving enough sales.

Interpretation:
• In '2021', KAR's fixed asset turnover was 6.09, illustrating how efficiently fixed assets are generating revenue. Industry average for Retail-Auto Dealers and Gas Stations in '2021' stood at 5.52.
• In '2022', KAR's fixed asset turnover was 6.85, illustrating how efficiently fixed assets are generating revenue. The increase since '2021' reflects strengthening financial performance. Industry average for Retail-Auto Dealers and Gas Stations in '2022' stood at 5.50. Industry average declined by 0.02 from previous year.
• In '2023', KAR's fixed asset turnover was 7.47, illustrating how efficiently fixed assets are generating revenue. The increase since '2022' reflects strengthening financial performance. Industry average for Retail-Auto Dealers and Gas Stations in '2023' stood at 4.82. Industry average declined by 0.68 from previous year.
• In '2024', KAR's fixed asset turnover was 7.74, illustrating how efficiently fixed assets are generating revenue. The increase since '2023' reflects strengthening financial performance. Industry average for Retail-Auto Dealers and Gas Stations in '2024' stood at 4.66. Industry average declined by 0.15 from previous year.
Overall, KAR's fixed asset turnover has steadily improved over the past 4 years.

Formula: Fixed Asset Turnover = Net Sales / Net Fixed Assets

Good Range: Ranges from 1 to 5 depending on asset intensity.