LKQ Corporation (LKQ)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,017,000 | 6,167,000 | 5,453,000 | 5,771,740 | 5,655,720 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $6,017,000K
= 0.00
The data shows that LKQ Corporation has consistently maintained a debt-to-equity ratio of 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt financing to fund its operations or growth during this period. A debt-to-equity ratio of 0.00 suggests that the company relies solely on equity financing, implying a low financial risk and demonstrating a strong financial position in terms of solvency and stability. However, it is important to note that a debt-to-equity ratio of 0.00 may also imply limited access to the tax benefits associated with debt financing. Overall, the consistent low debt-to-equity ratio reflects a conservative financial management approach by LKQ Corporation.