LKQ (LKQ) Asset Turnover

: 0.23 (As of Dec. 2023)

View and export this data going back to 2003. Start your Free Trial

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. LKQ's Revenue for the three months ended in Dec. 2023 was $3,501 Mil. LKQ's Total Assets for the quarter that ended in Dec. 2023 was $15,124 Mil. Therefore, LKQ's Asset Turnover for the quarter that ended in Dec. 2023 was 0.23.

Asset Turnover is linked to ROE % through Du Pont Formula. LKQ's annualized ROE % for the quarter that ended in Dec. 2023 was 11.68%. It is also linked to ROA % through Du Pont Formula. LKQ's annualized ROA % for the quarter that ended in Dec. 2023 was 4.68%.

LKQ Asset Turnover Historical Data

The historical data trend for LKQ's Asset 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.

* Premium members only.

LKQ Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Asset Turnover

1.04

0.93

1.05

1.04

1.02

LKQ Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Asset Turnover																0.25	0.27	0.26	0.24	0.23

Competitive Comparison

For the Auto Parts subindustry, LKQ's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

LKQ Asset Turnover Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, LKQ's Asset Turnover distribution charts can be found below:

* The bar in red indicates where LKQ's Asset Turnover falls into.

LKQ Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

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

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Dec. 2023 )	/	( (Total Assets (A: Dec. 2022 )	+	Total Assets (A: Dec. 2023 ))	/ count )
=	13866	/	( (12038	+	15079)	/ 2 )
=	13866	/	13558.5
=	1.02

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

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Dec. 2023 )	/	( (Total Assets (Q: Sep. 2023 )	+	Total Assets (Q: Dec. 2023 ))	/ count )
=	3501	/	( (15168	+	15079)	/ 2 )
=	3501	/	15123.5
=	0.23

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

LKQ (NAS:LKQ) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

LKQ's annulized ROE % for the quarter that ended in Dec. 2023 is

	ROE %^**		(Q: Dec. 2023 )
=	Net Income	/	Total Stockholders Equity
=	708	/	6062.5
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(708 / 14004)	*	(14004 / 15123.5)	*	(15123.5/ 6062.5)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	5.06 %	*	0.926	*	2.4946
=	ROA %	*	Equity Multiplier
=	4.68 %	*	2.4946
=	11.68 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

LKQ's annulized ROA % for the quarter that ended in Dec. 2023 is

	ROA %		(Q: Dec. 2023 )
=	Net Income	/	Total Assets
=	708	/	15123.5
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(708 / 14004)	*	(14004 / 15123.5)
=	Net Margin %	*	Asset Turnover
=	5.06 %	*	0.926
=	4.68 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

LKQ Asset Turnover Related Terms

Thank you for viewing the detailed overview of LKQ's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

LKQ (LKQ) Business Description

Industry

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