LKQ Corporation (LKQ)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,866,000 | 12,794,000 | 13,089,000 | 11,629,000 | 12,506,100 |
| Property, plant and equipment | US$ in thousands | 1,516,000 | 1,236,000 | 1,299,000 | 1,248,700 | 1,234,400 |
| Fixed asset turnover | 9.15 | 10.35 | 10.08 | 9.31 | 10.13 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,866,000K ÷ $1,516,000K
= 9.15
The fixed asset turnover ratio for LKQ Corp has shown some fluctuations over the past five years. It decreased from 10.13 in 2019 to 9.31 in 2020, then increased to 10.08 in 2021, further peaked at 10.35 in 2022, and slightly declined to 9.15 in 2023.
The trend indicates that, on average, LKQ Corp generated $9.15 in revenue for each dollar invested in fixed assets in 2023. This implies that the company was able to efficiently utilize its fixed assets to generate sales. Although there was a slight decrease in the ratio in 2023 compared to the previous year, the overall performance in utilizing fixed assets remained relatively strong.
It is necessary to further analyze the company's operational efficiency, investment in fixed assets, and overall financial performance to understand the underlying reasons for the changes in the fixed asset turnover ratio over the years.