LKQ Corporation (LKQ)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,167,000 | 5,453,000 | 5,772,000 | 5,655,720 | 5,008,880 |
| ROE | 15.21% | 21.09% | 18.90% | 11.28% | 10.81% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $938,000K ÷ $6,167,000K
= 15.21%
Over the past five years, LKQ Corp's Return on Equity (ROE) has shown variability but generally positive performance. In 2023, the ROE decreased to 15.18% from 21.07% in 2022, indicating a decline in the company's efficiency in generating profits from shareholders' equity. Despite this drop, the ROE remains above the levels seen in 2020 and 2019.
LKQ Corp's ROE was highest in 2022 at 21.07%, suggesting that the company was utilizing its equity effectively to generate profits during that period. The lower ROE in 2023 could be a result of various factors, such as changes in profitability, asset utilization, or financial leverage.
The ROE in 2021 was also relatively strong at 18.90%, indicating that the company was efficient in generating returns for its shareholders. The performance in 2020 and 2019, while lower, still showed a positive trend overall.
In conclusion, while there has been some fluctuation in LKQ Corp's ROE over the past five years, the company has generally managed to maintain a healthy return on equity, indicating efficient use of shareholders' funds to generate profits. Further analysis would be required to understand the specific factors influencing the changes in ROE over this period.