LKQ Corporation (LKQ)
Quick ratio
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash | US$ in thousands | 234,000 | 353,000 | 276,000 | 344,000 | 299,000 | 401,000 | 1,904,000 | 342,000 | 278,000 | 269,000 | 265,000 | 327,000 | 274,134 | 402,703 | 328,700 | 590,194 | 312,154 | 421,382 | 476,426 | 332,784 |
Short-term investments | US$ in thousands | — | — | 1,000 | 1,000 | — | — | — | — | — | — | — | — | — | 178,410 | 168,467 | 170,729 | 155,224 | 147,536 | — | — |
Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Total current liabilities | US$ in thousands | 2,862,000 | 2,990,000 | 2,904,000 | 3,059,000 | 3,318,000 | 3,559,000 | 3,028,000 | 2,412,000 | 2,271,000 | 2,351,000 | 2,485,000 | 2,495,000 | 2,165,450 | 2,322,260 | 2,278,160 | 2,436,630 | 1,988,490 | 1,926,500 | 1,949,770 | 1,938,970 |
Quick ratio | 0.08 | 0.12 | 0.10 | 0.11 | 0.09 | 0.11 | 0.63 | 0.14 | 0.12 | 0.11 | 0.11 | 0.13 | 0.13 | 0.25 | 0.22 | 0.31 | 0.24 | 0.30 | 0.24 | 0.17 |
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 fluctuated over the period under review. The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio of LKQ Corporation ranged from a low of 0.08 to a high of 0.63 during the period. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its liquid assets alone.
The quick ratio showed a notable improvement from the low levels recorded in December 2021 and March 2022, reaching its peak in June 2023. However, the ratio declined sharply in the following quarters, indicating a potential liquidity strain or a shift in the composition of the company's current assets.
It is important for investors and analysts to closely monitor the quick ratio of LKQ Corporation to assess the company's short-term liquidity position and its ability to manage its current obligations effectively. Further analysis of the company's financial statements and operational performance would provide greater insights into the factors influencing the fluctuations in the quick ratio.