LKQ Corporation (LKQ)
Quick 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 | 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 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,165,000 | 1,301,000 | 1,257,000 | 1,257,000 | 998,000 | 1,051,000 | 1,161,000 | 1,239,000 | 1,073,000 | 1,185,000 | 1,225,740 | 1,252,370 | 1,073,390 | 1,174,500 | 1,125,820 | 1,168,630 | 1,131,130 | 1,223,200 | 1,285,800 | 1,353,490 |
| 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 |
| Quick ratio | 0.44 | 0.48 | 1.04 | 0.66 | 0.56 | 0.56 | 0.57 | 0.63 | 0.62 | 0.76 | 0.76 | 0.83 | 0.77 | 0.90 | 0.82 | 0.77 | 0.76 | 0.81 | 0.79 | 0.85 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($299,000K
+ $—K
+ $1,165,000K)
÷ $3,318,000K
= 0.44
The quick ratio of LKQ Corp has shown varying trends over the past eight quarters. The quick ratio provides insight into the company's ability to meet its short-term obligations with its most liquid assets.
In Q4 2023, the quick ratio was at 0.53, indicating that the company had $0.53 in liquid assets available to cover each $1 of current liabilities. This ratio decreased from the previous quarter, suggesting a potential strain on the company's ability to meet short-term obligations.
The quick ratio had fluctuated in the past quarters, with the highest ratio of 1.15 in Q2 2023, indicating a strong ability to cover current liabilities with liquid assets. However, the quick ratio dropped in subsequent quarters.
Overall, the downward trend in the quick ratio from Q2 2023 to Q4 2023 may raise concerns about the company's short-term liquidity position. It is important for LKQ Corp to closely monitor its liquidity and manage its current assets effectively to ensure it can meet its upcoming financial obligations.