LKQ Corporation (LKQ)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,291,000 | 7,967,000 | 7,617,000 | 7,557,000 | 7,571,000 | 7,710,000 | 7,835,000 | 7,881,000 | 7,767,000 | 7,634,480 | 7,530,620 | 7,125,940 | 7,036,000 | 7,065,370 | 7,163,670 | 7,549,340 | 7,654,320 | 7,681,440 | 7,659,180 | 7,527,060 |
| Payables | US$ in thousands | 1,648,000 | 1,723,000 | 1,475,000 | 1,371,000 | 1,339,000 | 1,356,000 | 1,457,000 | 1,370,000 | 1,176,000 | 1,262,980 | 1,191,250 | 1,228,520 | 932,406 | 847,733 | 756,846 | 893,807 | 942,795 | 997,874 | 1,031,950 | 952,688 |
| Payables turnover | 5.03 | 4.62 | 5.16 | 5.51 | 5.65 | 5.69 | 5.38 | 5.75 | 6.60 | 6.04 | 6.32 | 5.80 | 7.55 | 8.33 | 9.47 | 8.45 | 8.12 | 7.70 | 7.42 | 7.90 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,291,000K ÷ $1,648,000K
= 5.03
The payables turnover ratio for LKQ Corp has shown some fluctuations over the past eight quarters, ranging from a low of 4.62 in Q3 2023 to a high of 5.75 in Q1 2022. The trend indicates that the company has been able to effectively manage its accounts payables by paying its suppliers on time. A higher payables turnover ratio generally suggests that the company is efficiently managing its trade credit, which can be a positive sign of strong liquidity and good vendor relations. However, a decreasing trend in payables turnover may also signal potential issues, such as delaying payments to suppliers for longer periods. Overall, the payables turnover ratio for LKQ Corp has been relatively stable, indicating a consistent approach to managing its payables and cash flow.