LKQ Corporation (LKQ)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 15,079,000 | 12,038,000 | 12,606,000 | 12,360,500 | 12,780,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $15,079,000K
= 0.00
The debt-to-assets ratio measures the proportion of a company's assets financed by debt. For LKQ Corp, the ratio has fluctuated over the past five years, ranging from 0.22 to 0.32. A lower ratio indicates that a smaller portion of the company's assets are funded by debt, which can be viewed positively as it suggests lower financial risk and greater financial stability.
In 2023, the debt-to-assets ratio increased to 0.28 from 0.22 in 2022 and 2021. This uptick may indicate that LKQ Corp has taken on more debt relative to its assets, potentially to fund expansion or operational needs. However, it is important to note that the ratio is still within a reasonable range compared to previous years.
Overall, LKQ Corp's debt-to-assets ratio suggests a moderate reliance on debt to finance its assets, with a trend towards a slightly higher level of debt in 2023 compared to the previous years. Monitoring this ratio in conjunction with other financial metrics can provide a more comprehensive understanding of the company's financial health and leverage position.