LKQ Corporation (LKQ)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.77 | 2.87 | 2.93 | 2.77 | 2.66 | 2.66 | 2.84 | 2.77 | 2.75 | 2.93 | 2.96 | 3.06 | 2.97 | 3.15 | 3.15 | 2.98 | 2.91 | 3.15 | 3.13 | 2.78 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 7.02 | 6.73 | 6.64 | 6.64 | 8.95 | 7.74 | 4.12 | 5.79 | 6.44 | 7.01 | 7.14 | 6.07 | 6.27 | 6.64 | 6.67 | 5.85 | 5.68 | 5.37 | 5.46 | 4.96 |
The analysis of LKQ Corporation's activity ratios reveals fluctuations in its efficiency in managing inventory and working capital over the period from March 31, 2020, to December 31, 2024.
1. Inventory Turnover:
- The inventory turnover ratio shows how many times a company's inventory is sold and replaced over a specific period. LKQ Corporation's inventory turnover ranged from a low of 2.75 on December 31, 2022, to a high of 3.15 on three occasions: September 30, 2020, June 30, 2021, and September 30, 2021. Overall, the company maintained a relatively stable range for inventory turnover during the period, indicating efficiency in managing inventory.
2. Receivables Turnover:
- The data provided does not contain information on LKQ Corporation's receivables turnover, which is a measure of how quickly a company collects payments from its customers. Without this information, it is challenging to assess the company's efficiency in collecting receivables.
3. Payables Turnover:
- Similarly, there is no data available on LKQ Corporation's payables turnover, which reflects how efficiently a company pays its suppliers and vendors. Without this information, it is difficult to evaluate the company's payment practices.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. LKQ Corporation's working capital turnover varied significantly throughout the period, ranging from a low of 4.12 on June 30, 2023, to a high of 8.95 on December 31, 2023. The company experienced fluctuations in working capital efficiency, with some quarters showing marked improvements while others experienced declines in efficiency.
Overall, while LKQ Corporation demonstrated relatively stable inventory turnover, the lack of data on receivables and payables turnover limits a comprehensive assessment of the company's overall activity ratios. Work may be needed to improve working capital turnover consistency over the period analyzed.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 131.97 | 127.36 | 124.78 | 131.84 | 137.40 | 137.35 | 128.47 | 132.00 | 132.67 | 124.75 | 123.46 | 119.18 | 122.69 | 115.89 | 116.06 | 122.56 | 125.27 | 116.02 | 116.59 | 131.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for LKQ Corporation have fluctuated over the past few years. The company has displayed varying levels of efficiency in managing its inventory. The DOH ranged from a low of 115.89 days in September 2021 to a high of 137.40 days in December 2023, indicating that the company may have experienced challenges in optimizing its inventory turnover during certain periods.
Unfortunately, data for Days of Sales Outstanding (DSO) and Number of Days of Payables are not available, making it difficult to analyze LKQ Corporation's efficiency in collecting receivables and managing payables.
In summary, LKQ Corporation should continue to focus on improving its inventory management practices to maintain optimal levels of inventory on hand and enhance its overall operational efficiency. Efforts should also be made to monitor and improve the collection of receivables and management of payables for a more comprehensive assessment of the company's activity ratios.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 9.94 | 10.11 | 10.35 | 5.49 | 5.30 | 5.19 | 4.92 | 5.07 | 4.90 | 9.79 | 9.31 | 9.70 | 9.85 | 10.32 |
| Total asset turnover | 0.96 | 0.94 | 0.95 | 0.93 | 0.92 | 0.88 | 0.91 | 1.02 | 1.06 | 1.11 | 1.09 | 1.04 | 1.04 | 1.03 | 1.01 | 0.93 | 0.94 | 0.96 | 0.98 | 1.00 |
LKQ Corporation's fixed asset turnover ratio shows the effectiveness of the company in generating sales from its fixed assets over a period of time. The trend in the fixed asset turnover ratio indicates a variable performance, with a peak of 10.35 in December 2022, followed by a decline before slightly picking up again. This suggests some fluctuations in the company's ability to efficiently utilize its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio reflects LKQ Corporation's overall efficiency in generating sales from all its assets. The ratio shows a fluctuating trend with values ranging from 0.88 to 1.11. The ratio peaked at 1.11 in September 2022 but has since decreased, indicating a varying efficiency in utilizing all assets to generate sales revenue over time.
Overall, the analysis of LKQ Corporation's long-term activity ratios suggests that the company's efficiency in generating sales from both fixed and total assets has experienced fluctuations over the period under consideration. It would be important for the company to closely monitor and manage its asset utilization in order to improve its overall operational efficiency and profitability.