LKQ Corporation (LKQ)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 938,000 | 1,150,000 | 1,091,000 | 638,000 | 541,260 |
| Total assets | US$ in thousands | 15,079,000 | 12,038,000 | 12,606,000 | 12,360,500 | 12,780,000 |
| ROA | 6.22% | 9.55% | 8.65% | 5.16% | 4.24% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $938,000K ÷ $15,079,000K
= 6.22%
The return on assets (ROA) for LKQ Corp has fluctuated over the past five years. In 2023, the ROA is 6.21%, showing a decrease from the previous year's 9.54%. This decrease may indicate a decline in the company's ability to generate profits from its assets efficiently. However, compared to 2020 and 2019, the ROA has shown an overall positive trend, suggesting an improvement in the company's asset utilization and profitability. It is essential for LKQ Corp to closely monitor and manage its asset efficiency to ensure sustainable growth and profitability in the future.