LKQ Corporation (LKQ)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,866,000 | 13,366,000 | 12,902,000 | 12,795,000 | 12,794,000 | 12,979,000 | 13,172,000 | 13,266,000 | 13,089,000 | 12,857,060 | 12,607,740 | 11,799,060 | 11,629,000 | 11,684,800 | 11,784,890 | 12,406,740 | 12,506,100 | 12,499,020 | 12,473,630 | 12,256,210 |
| Property, plant and equipment | US$ in thousands | 1,516,000 | 1,427,000 | 1,298,000 | 1,265,000 | 1,236,000 | 1,169,000 | 1,217,000 | 1,256,000 | 1,299,000 | 1,192,360 | 1,207,160 | 1,204,640 | 1,248,700 | 1,204,770 | 1,196,500 | 1,202,330 | 1,234,400 | 1,184,190 | 1,206,690 | 1,206,340 |
| Fixed asset turnover | 9.15 | 9.37 | 9.94 | 10.11 | 10.35 | 11.10 | 10.82 | 10.56 | 10.08 | 10.78 | 10.44 | 9.79 | 9.31 | 9.70 | 9.85 | 10.32 | 10.13 | 10.55 | 10.34 | 10.16 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $13,866,000K ÷ $1,516,000K
= 9.15
LKQ Corp's fixed asset turnover has been consistently high over the past eight quarters, ranging from 9.15 to 11.10. This indicates that the company is generating a significant amount of revenue in relation to its investment in fixed assets. A high fixed asset turnover ratio is generally positive as it suggests efficient utilization of fixed assets to generate sales.
The trend shows a slight decline from Q4 2022 to Q2 2023, with the ratio fluctuating between 9.15 and 10.56 during this period. However, the ratio has remained relatively stable in the most recent quarters, hovering around 10, indicating that LKQ Corp continues to effectively leverage its fixed assets to generate revenue.
Overall, the high and stable fixed asset turnover of LKQ Corp suggests that the company is effectively managing and utilizing its fixed assets to drive sales and maximize operational efficiency.