LKQ Corporation (LKQ)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,167,000 | 5,453,000 | 5,772,000 | 5,655,720 | 5,008,880 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,167,000K)
= 0.00
The debt-to-capital ratio for LKQ Corp has shown some fluctuation over the past five years. In 2019, the ratio was relatively high at 0.45, indicating that a significant portion of the company's capital structure was funded by debt that year. However, the ratio decreased to 0.34 in 2020, suggesting a partial reduction in debt relative to the company's capital.
Subsequently, in 2021 and 2022, the debt-to-capital ratio remained relatively stable at 0.33, indicating a consistent proportion of debt financing in relation to the company's capital structure during these years. Interestingly, in 2023, there was an increase in the ratio to 0.41, signaling a higher reliance on debt to finance the firm's operations in that particular year.
Overall, the trend in the debt-to-capital ratio for LKQ Corp indicates some variability in the company's debt management strategy over the five-year period, with a mix of higher and lower levels of debt utilization in relation to its total capital. Further analysis and context about the company's financial strategy and market conditions would be necessary to fully assess the implications of these fluctuations in the debt-to-capital ratio.