ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. LKQ's annualized net income for the quarter that ended in Dec. 2023 was $708 Mil. LKQ's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $6,063 Mil. Therefore, LKQ's annualized ROE % for the quarter that ended in Dec. 2023 was 11.68%.
The historical rank and industry rank for LKQ's ROE % or its related term are showing as below:
LKQ'
s ROE % Range Over the Past 10 Years
Min: 10.69 Med: 14.33 Max: 20.47
Current: 16.02
During the past 13 years, LKQ's highest ROE % was 20.47%. The lowest was 10.69%. And the median was 14.33%.
LKQ's ROE % is ranked better than 80.43% of 1267
companies
in the Vehicles & Parts industry
Industry Median: 7.36
vs LKQ: 16.02
LKQ ROE % Historical Data
The historical data trend for LKQ's ROE % 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
ROE %
11.06
11.97
19.09
20.47
16.11
LKQ Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
ROE %
14.48
19.38
19.31
13.97
11.68
Competitive Comparison
For the Auto Parts subindustry, LKQ's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, LKQ's ROE % distribution charts can be found below:
* The bar in red indicates where LKQ's ROE % falls into.
LKQ ROE % Calculation
LKQ's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
ROE % is displayed in the 30-year financial page.
LKQ (NAS:LKQ) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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 same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
LKQ ROE % Related Terms
Thank you for viewing the detailed overview of LKQ's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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