LKQ (LKQ) Inventory Turnover

: 0.69 (As of Dec. 2023)

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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. LKQ's Cost of Goods Sold for the three months ended in Dec. 2023 was $2,102 Mil. LKQ's Average Total Inventories for the quarter that ended in Dec. 2023 was $3,060 Mil. LKQ's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.69.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. LKQ's Days Inventory for the three months ended in Dec. 2023 was 132.82.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. LKQ's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.87.

LKQ Inventory Turnover Historical Data

The historical data trend for LKQ's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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LKQ Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

2.73

2.71

3.09

2.82

LKQ Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																0.66	0.72	0.75	0.77	0.69

LKQ Inventory Turnover Calculation

LKQ's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	8291	/ (	(2752	+	3121)	/	2 )
=	8291	/	2936.5
=	2.82

LKQ's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	2102	/ (	(2998	+	3121)	/	2 )
=	2102	/	3059.5
=	0.69

LKQ (NAS:LKQ) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

LKQ's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	3059.5	/	2102	*	365 / 4
	=	132.82

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

LKQ's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	3059.5	/	3501
	=	0.87

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

LKQ Inventory Turnover Related Terms

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LKQ (LKQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » LKQ Corp (NAS:LKQ) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

LKQ1:Germany LKQ1:Germany

Address

500 West Madison Street, Suite 2800, Chicago, IL, USA, 60661

Website

https://www.lkqcorp.com

LKQ is a Global distributor of non-OEM automotive parts. Initially formed in 1998 as a consolidator of auto salvage operations in the United States, it has since greatly expanded its scope to include distribution of new mechanical and collision parts, specialty auto equipment, and remanufactured and recycled parts in both Europe and North America. It still maintains its auto salvage business and owns over 70 LKQ pick-your-part junkyards. Separate from the self-service business, LKQ purchases over 300,000 salvage automobiles annually that are used to extract parts for resale. Globally, the company maintains approximately 1,700 facilities.

Executives

Blythe J Mcgarvie	director	HANNAFORD BROS CO, 145 PLEASANT HILL RD, SCARBOROUGH ME 04074
Varun Laroyia	officer: Executive VP and CFO	500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Dominick P Zarcone	director, officer: President and CEO	C/O LKQ CORPORATION, 500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
Meg Divitto	director	500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Xavier Urbain	director	500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
Patrick Berard	director	500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
Robert M. Hanser	director	500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
John W Mendel	director	C/O TRUECAR, INC., 120 BROADWAY, SUITE 200, SANTA MONICA CA 90401
Valueact Capital Master Fund, L.p.	director, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Rick Galloway	officer: SVP and CFO	500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Joseph M Holsten	director, officer: President and CEO
Genevieve L Dombrowski	officer: SVP -- Human Resources	500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Valueact Holdings, L.p.	director, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Valueact Capital Management, L.p.	director, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Valueact Capital Management, Llc	director, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129