LKQ Corporation (LKQ)
Total asset 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 |
| Total assets | US$ in thousands | 15,079,000 | 12,038,000 | 12,606,000 | 12,360,500 | 12,780,000 |
| Total asset turnover | 0.92 | 1.06 | 1.04 | 0.94 | 0.98 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $13,866,000K ÷ $15,079,000K
= 0.92
Over the past five years, LKQ Corp's total asset turnover ratio has varied, indicating fluctuations in the efficiency of the company in generating sales from its total assets.
In 2023, the total asset turnover ratio decreased to 0.92 from 1.06 in 2022, showing a decline in the company's ability to efficiently utilize its assets to generate revenue. This may suggest potential inefficiencies in managing and utilizing its assets in the most productive manner.
Comparing to 2021 and 2020, where the total asset turnover was 1.04 and 0.94 respectively, the ratio in 2023 is lower, indicating a potential decrease in asset efficiency from previous years.
However, if we look back to 2019 when the total asset turnover was 0.98, the ratio in 2023 is still lower, suggesting that the company may need to focus on improving its asset utilization efficiency to generate more revenue from its existing asset base.
Overall, the decreasing trend in the total asset turnover ratio over the past few years may imply a need for LKQ Corp to review and optimize its asset management strategies to enhance its operational efficiency and profitability.