LKQ Corporation (LKQ)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,355,000 | 13,866,000 | 12,794,000 | 13,088,500 | 11,628,800 |
| Total assets | US$ in thousands | 14,955,000 | 15,079,000 | 12,038,000 | 12,606,200 | 12,360,500 |
| Total asset turnover | 0.96 | 0.92 | 1.06 | 1.04 | 0.94 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $14,355,000K ÷ $14,955,000K
= 0.96
The total asset turnover of LKQ Corporation has displayed some fluctuations over the past five years as shown in the data provided. The ratio increased from 0.94 in December 2020 to 1.04 in December 2021, indicating that the company generated $1.04 in sales for every $1 of assets during that period. This suggests improved efficiency in asset utilization.
Subsequently, there was a further increase in total asset turnover to 1.06 by December 2022, indicating an even higher level of efficiency in generating sales from its assets. However, this trend was reversed in the following years as the total asset turnover decreased to 0.92 in December 2023 and then slightly increased to 0.96 by December 2024.
Overall, while there have been fluctuations in the total asset turnover of LKQ Corporation, the general trend shows that the company has been able to efficiently utilize its assets to generate sales, with some variability in performance over the years. It would be beneficial for stakeholders to further investigate the reasons behind the fluctuations to assess the company's asset management strategies and operational performance.