LKQ Corporation (LKQ)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,030,000 | 1,121,000 | 1,246,000 | 1,438,000 | 1,456,000 | 1,488,000 | 1,535,000 | 1,449,000 | 1,474,000 | 1,461,696 | 1,379,698 | 1,115,151 | 986,000 | 925,072 | 860,434 | 916,092 | 896,643 | 854,021 | 857,390 | 878,073 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 16.70% | 18.82% | 20.93% | 25.27% | 26.70% | 28.28% | 27.46% | 25.05% | 25.54% | 24.77% | 23.47% | 19.09% | 17.43% | 17.17% | 16.81% | 18.48% | 17.90% | 17.73% | 17.71% | 18.30% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,030,000K ÷ ($—K + $6,167,000K)
= 16.70%
LKQ Corp has shown a consistent trend in its return on total capital over the past eight quarters. The return on total capital has ranged from 13.79% to 18.67% during the period. Initially starting at 17.76% in Q1 2022, the ratio increased to 18.46% and then peaked at 18.67% in Q3 2022. However, there was a slight decrease in the ratio in the following quarters, with the lowest point at 13.79% in Q4 2023. Overall, the return on total capital for LKQ Corp has shown some fluctuations but remained relatively stable, indicating the company's ability to generate returns from its total capital base, albeit with minor variations.