LKQ Corporation (LKQ)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 40.21% | 40.39% | 40.96% | 40.94% | 40.82% | 40.60% | 40.52% | 40.59% | 40.66% | 40.62% | 40.27% | 39.61% | 39.50% | 39.53% | 39.21% | 39.15% | 38.80% | 38.54% | 38.60% | 38.59% |
| Operating profit margin | 9.79% | 10.27% | 11.03% | 12.31% | 12.36% | 12.08% | 12.06% | 11.11% | 11.26% | 11.37% | 10.94% | 9.45% | 8.48% | 7.92% | 7.30% | 7.38% | 7.17% | 6.83% | 6.87% | 7.16% |
| Pretax margin | 8.97% | 9.71% | 10.70% | 12.00% | 11.99% | 11.83% | 11.84% | 10.74% | 10.86% | 10.85% | 10.26% | 8.83% | 7.64% | 7.09% | 6.51% | 6.55% | 6.05% | 5.10% | 4.87% | 5.05% |
| Net profit margin | 6.76% | 7.14% | 7.81% | 8.96% | 8.98% | 9.18% | 9.21% | 8.28% | 8.34% | 8.05% | 7.50% | 6.43% | 5.49% | 5.12% | 4.72% | 4.74% | 4.33% | 3.50% | 3.36% | 3.47% |
LKQ Corp has displayed consistent gross profit margins in the range of 40.21% to 40.96% over the past eight quarters, indicating the company has been effectively managing its cost of goods sold. The operating profit margins have also remained relatively stable between 10.26% and 11.34%, reflecting the efficiency of the company in controlling its operating expenses.
However, there is a noticeable fluctuation in the pretax and net profit margins over the same period. The pretax margin decreased from 12.00% in Q1 2023 to 9.01% in Q4 2023, while the net profit margin also experienced a downtrend from 8.96% to 6.75% during the same quarters. This suggests that LKQ Corp may be facing challenges in managing its non-operating expenses or taxes, impacting its bottom line profitability.
In conclusion, while LKQ Corp has shown strong operational profitability based on its gross and operating profit margins, the declining trend in pretax and net profit margins indicates potential areas for improvement in overall financial performance and cost management.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.22% | 6.29% | 7.12% | 9.16% | 9.54% | 10.21% | 10.00% | 8.59% | 8.65% | 8.31% | 7.60% | 5.99% | 5.16% | 4.92% | 4.62% | 4.76% | 4.24% | 3.52% | 3.30% | 3.36% |
| Return on total capital | 16.70% | 18.82% | 20.93% | 25.27% | 26.70% | 28.28% | 27.46% | 25.05% | 25.54% | 24.77% | 23.47% | 19.09% | 17.43% | 17.17% | 16.81% | 18.48% | 17.90% | 17.73% | 17.71% | 18.30% |
| Return on equity (ROE) | 15.21% | 16.01% | 16.93% | 20.14% | 21.07% | 22.63% | 21.70% | 18.98% | 18.90% | 17.55% | 16.08% | 12.99% | 11.28% | 11.09% | 10.87% | 11.87% | 10.81% | 9.07% | 8.65% | 8.86% |
LKQ Corp's profitability ratios have shown some fluctuations over the past eight quarters.
- Operating return on assets (Operating ROA) has ranged from 9.43% to 11.60% over this period, with a general decreasing trend, indicating the company's ability to generate operating income from its assets has slightly declined.
- Return on assets (ROA) has also fluctuated, ranging from 6.21% to 9.16%, with a general decreasing trend, indicating the overall profitability of the company in generating earnings from its total assets has slightly decreased.
- Return on total capital has ranged from 13.79% to 17.92%, showing a slight fluctuation, but with a general decreasing trend over the period, indicating a decrease in the company's ability to generate return on its total invested capital.
- Return on equity (ROE) has varied from 15.18% to 22.64%, with fluctuations but also a general decreasing trend, suggesting a lower return for investors' equity in the company over the period.
Overall, the profitability ratios for LKQ Corp indicate some fluctuations and a slight decrease in profitability trends over the past eight quarters, which may warrant further investigation to understand the factors driving these changes.