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Openlane (Openlane) Interest Coverage : 1.46 (As of Dec. 2023)


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What is Openlane Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Openlane's Operating Income for the three months ended in Dec. 2023 was $57 Mil. Openlane's Interest Expense for the three months ended in Dec. 2023 was $-39 Mil. Openlane's interest coverage for the quarter that ended in Dec. 2023 was 1.46. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Openlane's Interest Coverage or its related term are showing as below:

KAR' s Interest Coverage Range Over the Past 10 Years
Min: 0.77   Med: 1.72   Max: 4.68
Current: 1.58


KAR's Interest Coverage is ranked worse than
88.46% of 1031 companies
in the Vehicles & Parts industry
Industry Median: 7.92 vs KAR: 1.58

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Openlane Interest Coverage Historical Data

The historical data trend for Openlane's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Openlane Interest Coverage Chart

Openlane Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.66 0.77 1.01 1.17 1.58

Openlane Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.52 1.71 1.45 1.69 1.46

Competitive Comparison of Openlane's Interest Coverage

For the Auto & Truck Dealerships subindustry, Openlane's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Openlane's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Openlane's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Openlane's Interest Coverage falls into.



Openlane Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Openlane's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Openlane's Interest Expense was $-156 Mil. Its Operating Income was $246 Mil. And its Long-Term Debt & Capital Lease Obligation was $273 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*245.6/-155.8
=1.58

Openlane's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Openlane's Interest Expense was $-39 Mil. Its Operating Income was $57 Mil. And its Long-Term Debt & Capital Lease Obligation was $273 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*57.4/-39.3
=1.46

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Openlane  (NYSE:KAR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Openlane Interest Coverage Related Terms

Thank you for viewing the detailed overview of Openlane's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Openlane (Openlane) Business Description

Traded in Other Exchanges
N/A
Address
11299 N. Illinois Street, Carmel, IN, USA, 46032
Openlane Inc offers a digital marketplace for used vehicles. The services comprise financing, repossessions, repairs, transportation, warranty, and inventory services. It operates used-vehicle auctions and offers complete online services for all parties involved. The company has two operating segments which include Marketplace and Finance, of which it generates the majority of the revenue from the Marketplace segment.
Executives
Brad S. Lakhia officer: EVP & CFO 19100 RIDGEWOOD PARKWAY, SAN ANTONIO TX 78259
Michael T. Kestner director 13085 HAMILTON CROSSING BLVD., CARMEL IN 46032
J Mark Howell director C/O ANGIE'S LIST, INC., 1030 EAST WASHINGTON STREET, INDIANAPOLIS IN 46202
James P Hallett officer: CEO
Kelly Peter officer: Pres. & CEO, OPENLANE C/O KAR AUCTION SERVICES, INC., 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Srisu Subrahmanyam officer: Pres KAR Svcs Group, EVP Ops 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
James P Coyle officer: EVP, Chief Digital Officer 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Justin T. Davis officer: President of BacklotCars 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Scott A Anderson officer: Chief Accounting Officer 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Mary Ellen Smith director 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Ignition Acquisition Holdings Gp Llc 10 percent owner C/O APAX PARTNERS L.P., 601 LEXINGTON AVENUE, NEW YORK NY 10022
Ignition Acquisition Holdings Lp 10 percent owner C/O APAX PARTNERS L.P., 601 LEXINGTON AVENUE, NEW YORK NY 10017
Ignition Gp Llc 10 percent owner C/O APAX PARTNERS L.P., 601 LEXINGTON AVENUE, NEW YORK NY 10022
Ignition Parent Lp 10 percent owner C/O APAX PARTNERS L.P., 601 LEXINGTON AVENUE, NEW YORK NY 10022
Roy Mackenzie director 601 LEXINGTON AVENUE, 53RD FLOOR, NEW YORK NY 10022