LKQ Corporation (LKQ)
Working capital 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 current assets | US$ in thousands | 4,906,000 | 4,868,000 | 4,258,000 | 4,254,370 | 4,034,030 |
| Total current liabilities | US$ in thousands | 2,862,000 | 3,318,000 | 2,271,000 | 2,165,450 | 1,988,490 |
| Working capital turnover | 7.02 | 8.95 | 6.44 | 6.27 | 5.68 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,355,000K ÷ ($4,906,000K – $2,862,000K)
= 7.02
The working capital turnover of LKQ Corporation has shown a positive trend over the period from December 31, 2020, to December 31, 2024, increasing from 5.68 to 7.02. This indicates the company's ability to efficiently utilize its working capital to generate sales revenue. The upward trajectory suggests that LKQ Corporation has been improving its efficiency in managing its current assets and liabilities to drive higher sales. A higher working capital turnover ratio signifies a more effective management of working capital, which can lead to improved financial performance and profitability for the company.