LKQ Corporation (LKQ)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 938,000 | 954,000 | 1,008,000 | 1,146,000 | 1,149,000 | 1,191,000 | 1,213,000 | 1,098,000 | 1,091,000 | 1,035,589 | 945,072 | 758,864 | 638,000 | 597,799 | 556,579 | 588,348 | 541,260 | 436,921 | 418,760 | 425,206 |
| Total stockholders’ equity | US$ in thousands | 6,167,000 | 5,958,000 | 5,953,000 | 5,691,000 | 5,453,000 | 5,262,000 | 5,590,000 | 5,784,000 | 5,772,000 | 5,901,810 | 5,877,920 | 5,842,630 | 5,655,720 | 5,388,190 | 5,118,510 | 4,957,840 | 5,008,880 | 4,817,770 | 4,840,490 | 4,799,480 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $938,000K ÷ $6,167,000K
= 15.21%
To analyze LKQ Corp's return on equity (ROE) over the past eight quarters, we observe a declining trend from Q1 2022 to Q4 2023. The ROE figures ranged from a high of 22.64% in Q3 2022 to a low of 15.18% in Q4 2023. This decline indicates a potential decrease in the company's ability to generate profits from its shareholder equity over the period.
The ROE reflects a company's efficiency in utilizing its equity to generate profits, and a decreasing trend may be a cause for concern for investors and stakeholders. Factors contributing to this decline could include changes in the company's profitability, asset utilization, financial leverage, or overall operational efficiency.
It is important for stakeholders to closely monitor LKQ Corp's financial performance and assess the effectiveness of its strategies to improve ROE in order to ensure sustainable growth and shareholder value in the future.