LKQ Corporation (LKQ)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 234,000 | 299,000 | 278,000 | 274,134 | 312,154 |
| Short-term investments | US$ in thousands | — | — | — | — | 155,224 |
| Total current liabilities | US$ in thousands | 2,862,000 | 3,318,000 | 2,271,000 | 2,165,450 | 1,988,490 |
| Cash ratio | 0.08 | 0.09 | 0.12 | 0.13 | 0.24 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($234,000K
+ $—K)
÷ $2,862,000K
= 0.08
The cash ratio of LKQ Corporation has been declining over the past five years, from 0.24 on December 31, 2020, to 0.08 on December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has decreased. A decreasing trend in the cash ratio may signal potential liquidity concerns or inefficiencies in managing cash resources. It is essential for LKQ Corporation to closely monitor and manage its cash position to ensure it can meet its immediate financial obligations.