LKQ Corporation (LKQ)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,866,000 | 13,366,000 | 12,902,000 | 12,795,000 | 12,794,000 | 12,979,000 | 13,172,000 | 13,266,000 | 13,089,000 | 12,857,060 | 12,607,740 | 11,799,060 | 11,629,000 | 11,684,800 | 11,784,890 | 12,406,740 | 12,506,100 | 12,499,020 | 12,473,630 | 12,256,210 |
| Receivables | US$ in thousands | 1,165,000 | 1,301,000 | 1,257,000 | 1,257,000 | 998,000 | 1,051,000 | 1,161,000 | 1,239,000 | 1,073,000 | 1,185,000 | 1,225,740 | 1,252,370 | 1,073,390 | 1,174,500 | 1,125,820 | 1,168,630 | 1,131,130 | 1,223,200 | 1,285,800 | 1,353,490 |
| Receivables turnover | 11.90 | 10.27 | 10.26 | 10.18 | 12.82 | 12.35 | 11.35 | 10.71 | 12.20 | 10.85 | 10.29 | 9.42 | 10.83 | 9.95 | 10.47 | 10.62 | 11.06 | 10.22 | 9.70 | 9.06 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $13,866,000K ÷ $1,165,000K
= 11.90
The receivables turnover ratio for LKQ Corp has shown some variability over the past eight quarters, ranging from a low of 10.18 in Q1 2023 to a high of 12.82 in Q4 2022. This ratio measures how efficiently the company is able to collect payments from its customers within a given period. A higher turnover ratio generally indicates that the company is collecting payments more quickly.
In general, LKQ Corp has maintained a healthy receivables turnover ratio above 10 over the past eight quarters, indicating effective management of accounts receivables. This suggests that the company is efficient in converting its credit sales into cash, which is a positive sign for its liquidity and financial health. However, the slight fluctuations in the ratio over time may warrant further investigation to understand the underlying reasons for the changes and to ensure that the company's credit policies and collection processes are effectively managed.
Overall, the trend in LKQ Corp's receivables turnover ratio suggests that the company is effectively managing its receivables and collecting payments in a timely manner, which is essential for maintaining a strong cash flow and operational performance.