LKQ Corporation (LKQ)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 234,000 | 299,000 | 278,000 | 274,134 | 312,154 |
| Short-term investments | US$ in thousands | — | — | — | — | 155,224 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,862,000 | 3,318,000 | 2,271,000 | 2,165,450 | 1,988,490 |
| Quick ratio | 0.08 | 0.09 | 0.12 | 0.13 | 0.24 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($234,000K
+ $—K
+ $—K)
÷ $2,862,000K
= 0.08
Based on the provided data, the quick ratio of LKQ Corporation has been declining over the years, indicating a deterioration in the company's short-term liquidity position. The quick ratio, which measures the company's ability to cover its short-term obligations with its most liquid assets, has decreased from 0.24 as of December 31, 2020, to 0.08 as of December 31, 2024.
A quick ratio below 1.0 suggests that the company may have difficulty meeting its immediate debt obligations using its current liquid assets. The downward trend observed in LKQ Corporation's quick ratio indicates a potential liquidity challenge that may require attention from the management to ensure the company's financial health and stability in the short term.