LKQ Corporation (LKQ)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 14,355,000 | 14,499,000 | 14,483,000 | 14,220,000 | 13,866,000 | 13,366,000 | 12,902,000 | 12,795,000 | 12,794,000 | 12,978,990 | 13,171,600 | 13,265,710 | 13,088,500 | 12,856,400 | 12,607,470 | 11,798,680 | 11,628,830 | 11,684,800 | 11,784,890 | 12,406,740 |
| Total current assets | US$ in thousands | 4,906,000 | 5,145,000 | 5,085,000 | 5,202,000 | 4,868,000 | 5,286,000 | 6,156,000 | 4,623,000 | 4,258,000 | 4,202,000 | 4,331,000 | 4,682,000 | 4,254,370 | 4,259,400 | 4,168,530 | 4,453,950 | 4,034,030 | 4,102,510 | 4,106,970 | 4,442,660 |
| Total current liabilities | US$ in thousands | 2,862,000 | 2,990,000 | 2,904,000 | 3,059,000 | 3,318,000 | 3,559,000 | 3,028,000 | 2,412,000 | 2,271,000 | 2,351,000 | 2,485,000 | 2,495,000 | 2,165,450 | 2,322,260 | 2,278,160 | 2,436,630 | 1,988,490 | 1,926,500 | 1,949,770 | 1,938,970 |
| Working capital turnover | 7.02 | 6.73 | 6.64 | 6.64 | 8.95 | 7.74 | 4.12 | 5.79 | 6.44 | 7.01 | 7.14 | 6.07 | 6.27 | 6.64 | 6.67 | 5.85 | 5.68 | 5.37 | 5.46 | 4.96 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,355,000K ÷ ($4,906,000K – $2,862,000K)
= 7.02
The working capital turnover ratio for LKQ Corporation has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
The trend of the working capital turnover ratio shows an overall increase from 4.96 on March 31, 2020, to 7.02 on December 31, 2024, with minor fluctuations in between. This suggests an improvement in the company's ability to generate sales revenue relative to its working capital investment.
The ratio peaked at 8.95 on December 31, 2023, indicating a period of exceptionally high efficiency in utilizing working capital to generate sales. On the other hand, the ratio hit a low of 4.12 on June 30, 2023, indicating a temporary decrease in efficiency during that period.
Overall, the increasing trend in the working capital turnover ratio suggests that LKQ Corporation is becoming more efficient in utilizing its working capital to drive sales growth. This improvement in efficiency reflects positively on the company's operational performance and management of working capital.