LKQ Corporation (LKQ)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 of LKQ Corp has shown some fluctuations over the past eight quarters. The ratio increased from 0.33 in Q4 2022 to 0.41 in Q4 2023, indicating a higher level of debt relative to the company's total capital during this period. Subsequently, the ratio stayed relatively stable around 0.40 to 0.42 in the following quarters of 2023.
Overall, the trend suggests that LKQ Corp has been relying more on debt financing compared to its capital base, as indicated by the ratio consistently above 0.30. This may imply a higher financial risk for the company, as increased debt levels could lead to higher interest expenses and potential liquidity challenges.
It is essential for stakeholders to monitor this trend closely to ensure that the company's debt levels remain sustainable and do not pose a significant threat to its financial stability in the long run.