LKQ Corporation (LKQ)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $6,167,000K
= 0.00
The debt-to-equity ratio for LKQ Corp has shown some fluctuation over the past five years. In 2019, the ratio stood at 0.81, indicating that the company had a higher level of debt relative to its equity. However, there has been a decreasing trend in the debt-to-equity ratio, dropping to 0.49 in both 2022 and 2021, suggesting a significant reduction in the company's debt compared to its equity.
In 2023, the ratio increased to 0.69, indicating that the company's debt level has risen relative to equity compared to the previous year. Despite this slight increase, the ratio remains below 1, implying that LKQ Corp still has more equity than debt in its capital structure.
Overall, the decreasing trend in the debt-to-equity ratio from 2019 to 2021 suggests that LKQ Corp has been actively managing its debt levels and strengthening its equity position. However, the slight uptick in the ratio in 2023 may require further monitoring to assess whether it is a temporary fluctuation or a potential shift in the company's capital structure strategy.