LKQ Corporation (LKQ)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 11.90 | 10.27 | 10.26 | 10.18 | 12.82 | 12.35 | 11.35 | 10.71 | 12.20 | 10.85 | 10.29 | 9.42 | 10.83 | 9.95 | 10.47 | 10.62 | 11.06 | 10.22 | 9.70 | 9.06 | |
| DSO | days | 30.67 | 35.53 | 35.56 | 35.86 | 28.47 | 29.56 | 32.17 | 34.09 | 29.92 | 33.64 | 35.49 | 38.74 | 33.69 | 36.69 | 34.87 | 34.38 | 33.01 | 35.72 | 37.62 | 40.31 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.90
= 30.67
To analyze LKQ Corp's days of sales outstanding (DSO) based on the provided data, we can observe fluctuations in DSO over the past eight quarters. DSO measures the average number of days it takes for a company to collect payment after making a sale.
In Q4 2023, the DSO was 30.67 days, showing an improvement from the previous quarter. This suggests that the company was more efficient in collecting payments from customers during this period. However, compared to Q4 2022, the DSO was slightly higher, indicating a potential slowdown in collections efficiency year over year.
Looking at the trend over the past eight quarters, we can see some variability in DSO, with levels ranging from 28.47 days to 35.86 days. This fluctuation could be influenced by factors such as changes in sales terms, customer payment behaviors, and the company's credit policies.
Overall, while the recent decrease in DSO is a positive sign of improved collections efficiency for LKQ Corp, it would be essential for the company to continue monitoring and managing their receivables effectively to ensure timely cash inflows and maintain a healthy liquidity position.