LKQ Corporation (LKQ)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,355,000 | 13,866,000 | 12,794,000 | 13,088,500 | 11,628,800 |
| Property, plant and equipment | US$ in thousands | — | — | 1,236,000 | 2,660,060 | 1,248,700 |
| Fixed asset turnover | — | — | 10.35 | 4.92 | 9.31 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,355,000K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of LKQ Corporation, the trend in fixed asset turnover over the past few years is as follows:
- As of December 31, 2020, the fixed asset turnover ratio was 9.31, indicating that the company generated $9.31 in revenue for every dollar invested in fixed assets.
- By December 31, 2021, the fixed asset turnover ratio decreased to 4.92, suggesting a decline in the efficiency of utilizing fixed assets to generate revenue.
- However, by December 31, 2022, the fixed asset turnover ratio improved significantly to 10.35, indicating a substantial increase in efficiency in generating revenue from fixed assets.
- Unfortunately, there is no data available for December 31, 2023 and December 31, 2024, making it challenging to assess the trend accurately for those years.
Overall, the fluctuations in LKQ Corporation's fixed asset turnover ratio highlight changes in the company's efficiency in utilizing its fixed assets to generate revenue over the specified period. Further analysis may be needed to understand the underlying reasons for these fluctuations and their impact on the company's operational performance and financial health.