LKQ Corporation (LKQ)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,291,000 | 7,571,000 | 7,767,000 | 7,036,000 | 7,654,320 |
| Payables | US$ in thousands | 1,648,000 | 1,339,000 | 1,176,000 | 932,406 | 942,795 |
| Payables turnover | 5.03 | 5.65 | 6.60 | 7.55 | 8.12 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,291,000K ÷ $1,648,000K
= 5.03
The payables turnover ratio for LKQ Corp has been gradually decreasing over the past five years, from 8.12 in 2019 to 5.03 in 2023. This indicates that the company is taking longer to pay off its trade payables. A decreasing payables turnover ratio may suggest that the company is holding onto its payables for a longer period, potentially indicating cash flow or liquidity issues. Further analysis, including comparisons with industry benchmarks and peer companies, is recommended to gain a more holistic understanding of LKQ Corp's payables management efficiency.