LKQ Corporation (LKQ)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,017,000 | 6,167,000 | 5,453,000 | 5,771,740 | 5,655,720 |
| ROE | 11.38% | 15.18% | 21.07% | 18.90% | 11.29% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $685,000K ÷ $6,017,000K
= 11.38%
LKQ Corporation's return on equity (ROE) has shown a fluctuating trend over the past five years. In 2020, the ROE was 11.29%, indicating that for every dollar of shareholders' equity, the company generated a return of 11.29%. By December 31, 2021, the ROE had improved to 18.90%, suggesting a more efficient utilization of equity in generating profits.
The trend continued to improve in 2022, with an ROE of 21.07%, signifying strong profitability relative to shareholders' equity. However, there was a slight decrease in 2023, where the ROE stood at 15.18%, possibly due to changes in the company's operations or financial performance.
By the end of 2024, the ROE had decreased further to 11.38%, indicating a decline in the company's ability to generate profits from shareholders' equity compared to the previous year. Overall, while LKQ Corporation has shown varying levels of ROE, it is essential for stakeholders to monitor the factors influencing these fluctuations to assess the company's financial performance effectively.