LKQ Corporation (LKQ)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,866,000 | 12,794,000 | 13,089,000 | 11,629,000 | 12,506,100 |
| Receivables | US$ in thousands | 1,165,000 | 998,000 | 1,073,000 | 1,073,390 | 1,131,130 |
| Receivables turnover | 11.90 | 12.82 | 12.20 | 10.83 | 11.06 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $13,866,000K ÷ $1,165,000K
= 11.90
The receivables turnover ratio for LKQ Corp has exhibited some fluctuations over the past five years. The ratio was 11.90 in 2023, which indicates that, on average, the company collected its accounts receivable approximately 11.90 times during the year. This marks a slight decrease compared to the previous year's ratio of 12.82.
The decline in the receivables turnover ratio from 2022 to 2023 could suggest a potential inefficiency in collections management, as it took slightly longer for the company to collect its outstanding receivables compared to the previous period. However, it is important to note that a higher receivables turnover ratio generally indicates a more efficient collection process, implying that LKQ Corp has been relatively effective in converting its receivables into cash in the recent years.
Overall, LKQ Corp's receivables turnover has shown variability but has generally remained at levels indicating reasonable efficiency in managing its accounts receivable over the analyzed period. Further investigation and comparison with industry benchmarks would be beneficial to assess the company's performance more comprehensively.