LKQ Corporation (LKQ)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,955,000 | 15,466,000 | 15,211,000 | 15,270,000 | 15,079,000 | 15,168,000 | 14,155,000 | 12,508,000 | 12,038,000 | 11,666,000 | 12,134,000 | 12,778,000 | 12,606,200 | 12,460,900 | 12,438,100 | 12,665,500 | 12,360,500 | 12,161,200 | 12,035,300 | 12,354,100 |
| Total stockholders’ equity | US$ in thousands | 6,017,000 | 6,234,000 | 6,129,000 | 6,159,000 | 6,167,000 | 5,958,000 | 5,953,000 | 5,691,000 | 5,453,000 | 5,262,000 | 5,590,000 | 5,784,000 | 5,771,740 | 5,901,810 | 5,877,920 | 5,842,630 | 5,655,720 | 5,388,190 | 5,118,510 | 4,957,840 |
| Financial leverage ratio | 2.49 | 2.48 | 2.48 | 2.48 | 2.45 | 2.55 | 2.38 | 2.20 | 2.21 | 2.22 | 2.17 | 2.21 | 2.18 | 2.11 | 2.12 | 2.17 | 2.19 | 2.26 | 2.35 | 2.49 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,955,000K ÷ $6,017,000K
= 2.49
The financial leverage ratio of LKQ Corporation has been relatively stable over the past few years, ranging from 2.11 to 2.55. This ratio indicates that the company has, on average, used debt to finance its operations to a moderate extent. A financial leverage ratio of around 2 suggests that LKQ Corporation's assets are funded approximately equally by debt and equity.
The slight fluctuations in the ratio over time could be due to changes in the company's capital structure, such as taking on additional debt or issuing more equity. It is important for investors and analysts to monitor the financial leverage ratio as excessive debt levels may increase financial risk for the company, especially during economic downturns or periods of high interest rates.