LKQ Corporation (LKQ)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,304,000 | 1,321,000 | 1,338,000 | 1,369,000 | 1,425,000 | 1,436,000 | 1,458,000 | 1,602,000 | 1,593,000 | 1,576,192 | 1,600,234 | 1,466,160 | 1,469,667 | 1,455,483 | 1,368,109 | 1,132,837 | 993,897 | 950,049 | 897,351 | 985,195 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,017,000 | 6,234,000 | 6,129,000 | 6,159,000 | 6,167,000 | 5,958,000 | 5,953,000 | 5,691,000 | 5,453,000 | 5,262,000 | 5,590,000 | 5,784,000 | 5,771,740 | 5,901,810 | 5,877,920 | 5,842,630 | 5,655,720 | 5,388,190 | 5,118,510 | 4,957,840 |
| Return on total capital | 21.67% | 21.19% | 21.83% | 22.23% | 23.11% | 24.10% | 24.49% | 28.15% | 29.21% | 29.95% | 28.63% | 25.35% | 25.46% | 24.66% | 23.28% | 19.39% | 17.57% | 17.63% | 17.53% | 19.87% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,304,000K ÷ ($—K + $6,017,000K)
= 21.67%
The Return on Total Capital for LKQ Corporation has shown fluctuations over the period from March 31, 2020, to December 31, 2024. Initially, the return increased from 19.87% on March 31, 2020, to a peak of 29.95% on September 30, 2022, showing a strong upward trend. However, after reaching the peak, the return started to decrease gradually.
The return decreased to 21.19% by September 30, 2024. The return on total capital is a measure of how efficiently the company is utilizing its capital to generate profits. The higher the percentage, the better the company is at delivering returns on the total capital employed. The fluctuations in the return on total capital indicate changes in the company's profitability and efficiency over the analyzed period.