LKQ Corporation (LKQ)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,357,000 | 1,373,000 | 1,423,000 | 1,575,000 | 1,581,000 | 1,568,000 | 1,588,000 | 1,474,000 | 1,474,000 | 1,461,696 | 1,379,698 | 1,115,151 | 986,000 | 925,072 | 860,434 | 916,092 | 896,643 | 854,021 | 857,390 | 878,073 |
| Total assets | US$ in thousands | 15,079,000 | 15,168,000 | 14,155,000 | 12,508,000 | 12,038,000 | 11,666,000 | 12,134,000 | 12,778,000 | 12,606,000 | 12,460,900 | 12,438,100 | 12,665,500 | 12,360,500 | 12,161,200 | 12,035,300 | 12,354,100 | 12,780,000 | 12,411,700 | 12,704,200 | 12,665,900 |
| Operating ROA | 9.00% | 9.05% | 10.05% | 12.59% | 13.13% | 13.44% | 13.09% | 11.54% | 11.69% | 11.73% | 11.09% | 8.80% | 7.98% | 7.61% | 7.15% | 7.42% | 7.02% | 6.88% | 6.75% | 6.93% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,357,000K ÷ $15,079,000K
= 9.00%
The operating return on assets (operating ROA) for LKQ Corp has shown a declining trend over the past eight quarters. In Q1 2022, the operating ROA was 11.66%, steadily increasing to reach a peak of 12.20% in Q3 2022. However, the ratio then started decreasing, with Q1 2023 showing a significant drop to 11.60%. This downward trend continued in Q2 2023 and Q3 2023, with operating ROA declining to 10.30% and 9.47%, respectively. In Q4 2023, there was a marginal increase to 9.43%.
The decreasing trend in operating ROA suggests that LKQ Corp may be experiencing challenges in generating operating income relative to its assets. Further analysis and investigation into the company's operational efficiency and asset utilization may be warranted to understand the underlying factors contributing to the declining performance in this key financial metric.