LKQ Corporation (LKQ)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,868,000 | 4,258,000 | 4,254,000 | 4,034,030 | 4,687,820 |
| Total current liabilities | US$ in thousands | 3,318,000 | 2,271,000 | 2,165,000 | 1,988,490 | 2,178,510 |
| Current ratio | 1.47 | 1.87 | 1.96 | 2.03 | 2.15 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,868,000K ÷ $3,318,000K
= 1.47
The current ratio of LKQ Corp has exhibited a declining trend over the past five years, decreasing from 2.15 in 2019 to 1.47 in 2023. This indicates that the company may be facing challenges in meeting its short-term obligations with its current assets. A current ratio below 2.0 suggests that the company may have difficulty covering its current liabilities with its current assets. It may need to assess its liquidity position and consider strategies to improve its ability to pay off its short-term obligations. Further analysis of other liquidity ratios and the company's overall financial health would provide a more comprehensive view of its ability to meet its short-term obligations.