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.