LKQ Corporation (LKQ)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.03 | 5.65 | 6.60 | 7.55 | 8.12 | |
| Number of days of payables | days | 72.55 | 64.55 | 55.26 | 48.37 | 44.96 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.03
= 72.55
The number of days of payables for LKQ Corp has been fluctuating over the past five years. It increased from 44.96 days in 2019 to 72.55 days in 2023, indicating that the company took longer to pay its suppliers during this period. This suggests that LKQ Corp may have been managing its cash flow differently or negotiating different payment terms with suppliers.
The trend of increasing days of payables could signify potential liquidity challenges or strategic cash management decisions by the company. A longer number of days of payables may indicate that LKQ Corp is taking more time to pay its bills, thereby conserving cash or potentially utilizing supplier credit terms more effectively.
It is important for stakeholders to monitor changes in the number of days of payables to assess the company's financial health, operational efficiency, and relationship with suppliers. The increase in days of payables should be analyzed in conjunction with other financial ratios and business performance indicators to gain a comprehensive understanding of LKQ Corp's financial management practices.