LKQ Corporation (LKQ)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.21% | 40.82% | 40.66% | 39.50% | 38.80% |
| Operating profit margin | 9.79% | 12.36% | 11.26% | 8.48% | 7.17% |
| Pretax margin | 8.97% | 11.99% | 10.86% | 7.64% | 6.05% |
| Net profit margin | 6.76% | 8.99% | 8.34% | 5.49% | 4.33% |
LKQ Corp's profitability ratios show generally positive trends over the past five years. The gross profit margin has remained relatively stable, ranging from 38.80% in 2019 to 40.82% in 2022. This indicates the company has been effective in managing its cost of goods sold and generating profits on its sales.
The operating profit margin has shown an increasing trend, reaching 11.27% in 2022, indicating that the company has been able to control its operating expenses more efficiently over time.
The pretax margin has also shown an increasing trend, with a significant jump from 6.07% in 2019 to 11.95% in 2022. This suggests that the company has been able to improve its operating efficiency and generate more profits before accounting for taxes.
Similarly, the net profit margin has shown an increasing trend, reaching 8.98% in 2022, indicating that LKQ Corp has been effectively managing its bottom line and maximizing profits for its shareholders.
Overall, the profitability ratios for LKQ Corp indicate a positive trend in the company's ability to generate profits and manage its expenses efficiently over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.00% | 13.13% | 11.69% | 7.98% | 7.02% |
| Return on assets (ROA) | 6.22% | 9.55% | 8.65% | 5.16% | 4.24% |
| Return on total capital | 16.70% | 26.70% | 23.39% | 13.86% | 17.87% |
| Return on equity (ROE) | 15.21% | 21.09% | 18.90% | 11.28% | 10.81% |
LKQ Corp's profitability ratios show a mixed performance over the last five years. The Operating return on assets (Operating ROA) has fluctuated between 7.67% in 2019 to 11.98% in 2022, with a value of 9.43% in 2023. This ratio indicates the company's ability to generate profits from its assets before interest and taxes.
Similarly, the Return on assets (ROA) has varied from 4.24% in 2019 to 9.54% in 2022. The ROA measures the company's ability to generate profits from its total assets.
The Return on total capital has shown an increasing trend from 10.48% in 2019 to 17.92% in 2022, reaching 13.79% in 2023. This ratio reflects the company's efficiency in generating profits from its total invested capital.
Lastly, the Return on equity (ROE) has fluctuated between 10.81% in 2019 to 21.07% in 2022, with a value of 15.18% in 2023. The ROE indicates how effectively the company is using shareholders' equity to generate profits.
Overall, LKQ Corp has shown variability in its profitability ratios over the years, with some ratios improving while others experiencing fluctuations. This demonstrates the need for further analysis to understand the factors driving the company's profitability performance.