LKQ Corporation (LKQ)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 299,000 | 401,000 | 1,904,000 | 342,000 | 278,000 | 269,000 | 265,000 | 327,000 | 274,000 | 403,000 | 329,000 | 590,000 | 312,000 | 421,382 | 476,426 | 332,784 | 523,387 | 433,391 | 375,967 | 316,066 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 178,410 | 168,467 | 170,729 | 155,224 | 147,536 | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.09 | 0.11 | 0.63 | 0.14 | 0.12 | 0.11 | 0.11 | 0.13 | 0.13 | 0.25 | 0.22 | 0.31 | 0.23 | 0.30 | 0.24 | 0.17 | 0.24 | 0.21 | 0.18 | 0.16 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($299,000K
+ $—K)
÷ $3,318,000K
= 0.09
The cash ratio of LKQ Corp has shown fluctuations over the past eight quarters. In Q2 2023, the cash ratio spiked to 0.73, indicating that the company had a high level of cash and cash equivalents to cover its current liabilities. This could suggest robust liquidity and financial health during that period.
However, this high cash ratio in Q2 2023 was followed by a substantial decline in Q3 2023 to 0.19, which raises some concerns about the company's liquidity position in that quarter. It suggests that LKQ Corp may have had less cash on hand to cover its short-term obligations.
Overall, the cash ratio of LKQ Corp has been relatively volatile, ranging from 0.18 to 0.73 over the quarters analyzed. Investors and stakeholders may need to closely monitor this ratio to assess the company's ability to meet its short-term liabilities with its available cash resources.