LKQ Corporation (LKQ)
Working capital 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 |
| Total current assets | US$ in thousands | 4,868,000 | 5,286,000 | 6,156,000 | 4,623,000 | 4,258,000 | 4,202,000 | 4,331,000 | 4,682,000 | 4,254,000 | 4,259,400 | 4,168,530 | 4,453,950 | 4,034,030 | 4,102,510 | 4,106,970 | 4,442,660 | 4,687,820 | 4,483,860 | 4,631,850 | 4,644,770 |
| Total current liabilities | US$ in thousands | 3,318,000 | 3,559,000 | 3,028,000 | 2,412,000 | 2,271,000 | 2,351,000 | 2,485,000 | 2,495,000 | 2,165,000 | 2,322,260 | 2,278,160 | 2,436,630 | 1,988,490 | 1,926,500 | 1,949,770 | 1,938,970 | 2,178,510 | 2,054,050 | 2,106,950 | 1,971,490 |
| Working capital turnover | 8.95 | 7.74 | 4.12 | 5.79 | 6.44 | 7.01 | 7.14 | 6.07 | 6.27 | 6.64 | 6.67 | 5.85 | 5.69 | 5.37 | 5.46 | 4.96 | 4.98 | 5.14 | 4.94 | 4.58 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,866,000K ÷ ($4,868,000K – $3,318,000K)
= 8.95
The working capital turnover for LKQ Corp has varied over the past eight quarters, ranging from a low of 4.12 in Q2 2023 to a high of 8.95 in Q4 2023. The working capital turnover indicates how efficiently the company is utilizing its working capital to generate sales revenue.
A higher working capital turnover ratio suggests that the company is effectively utilizing its current assets to generate sales, which is generally a positive sign. In the case of LKQ Corp, the trend shows that the company's efficiency in using its working capital to generate sales has improved over the quarters.
However, the fluctuations in the working capital turnover ratio over the quarters could indicate fluctuations in the company's sales and working capital management. For instance, a lower ratio in Q2 2023 compared to Q4 2023 may suggest a decrease in the efficiency of working capital utilization during that period.
It is important for LKQ Corp to closely monitor its working capital turnover ratio and analyze the reasons behind the fluctuations to ensure effective management of its working capital and continued operational efficiency.