LKQ Corporation (LKQ)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 685,000 | 936,000 | 1,149,000 | 1,091,000 | 638,423 |
| Total assets | US$ in thousands | 14,955,000 | 15,079,000 | 12,038,000 | 12,606,200 | 12,360,500 |
| ROA | 4.58% | 6.21% | 9.54% | 8.65% | 5.17% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $685,000K ÷ $14,955,000K
= 4.58%
Based on the data provided, the return on assets (ROA) of LKQ Corporation has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024.
In December 2020, the ROA was reported at 5.17%, indicating that for every dollar of assets owned, the company generated a return of 5.17 cents.
By December 2021, the ROA had increased to 8.65%, which suggests an improvement in the company's efficiency in generating profits from its assets.
Subsequently, in December 2022, the ROA further improved to 9.54%, reaching its peak during the period under review. This signifies that the company was more effective in utilizing its assets to generate earnings.
However, in December 2023, there was a decline in the ROA to 6.21%, indicating a decrease in the company's ability to generate profits from its assets compared to the previous year.
By December 2024, the ROA decreased further to 4.58%, reflecting a continued decline in the company's efficiency in converting its assets into profits.
Overall, the analysis of LKQ Corporation's ROA indicates some fluctuations in asset utilization efficiency over the five-year period, with notable improvements in 2021 and 2022, followed by declines in the subsequent years.