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LKQ (LKQ) Debt-to-EBITDA : 3.45 (As of Sep. 2024)


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What is LKQ Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

LKQ's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $291 Mil. LKQ's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $5,480 Mil. LKQ's annualized EBITDA for the quarter that ended in Sep. 2024 was $1,672 Mil. LKQ's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 was 3.45.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for LKQ's Debt-to-EBITDA or its related term are showing as below:

LKQ' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.9   Med: 3.14   Max: 4.42
Current: 3.54

During the past 13 years, the highest Debt-to-EBITDA Ratio of LKQ was 4.42. The lowest was 1.90. And the median was 3.14.

LKQ's Debt-to-EBITDA is ranked worse than
66.7% of 1054 companies
in the Vehicles & Parts industry
Industry Median: 2.31 vs LKQ: 3.54

LKQ Debt-to-EBITDA Historical Data

The historical data trend for LKQ's Debt-to-EBITDA 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 Debt-to-EBITDA Chart

LKQ Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.42 3.27 2.41 2.12 3.19

LKQ Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.48 3.65 3.55 3.31 3.45

Competitive Comparison of LKQ's Debt-to-EBITDA

For the Auto Parts subindustry, LKQ's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, LKQ's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where LKQ's Debt-to-EBITDA falls into.



LKQ Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

LKQ's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(820 + 4818) / 1768
=3.19

LKQ's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(291 + 5480) / 1672
=3.45

* 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 Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Sep. 2024) EBITDA data.


LKQ  (NAS:LKQ) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


LKQ Debt-to-EBITDA Related Terms

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


LKQ Business Description

Traded in Other Exchanges
Address
500 West Madison Street, Suite 2800, Chicago, IL, USA, 60661
Since forming in 1998 to consolidate the auto salvage business in the United States, LKQ has developed into a leading distributor of aftermarket and recycled auto parts with around 1,700 facilities across North America and Europe. The company primarily sells into the professional, or do-it-for-me, channel and offers an assortment of collision and mechanical parts to both body shops and mechanical repair shops. It also continues to operate more than 70 LKQ pick-your-part junkyards. Separate from the self-service business, LKQ typically purchases around 250,000 salvage vehicles annually that are used to extract vehicle parts for resale.
Executives
Rick Galloway officer: SVP and CFO 500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Matthew J Mckay officer: SVP of Human Resources 500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Justin L Jude officer: SVP Ops -- Wholesale Parts C/O LKQ CORPORATION, 500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
Walter P Hanley officer: Senior VP of Development C/O LKQ CORPORATION, 120 NORTH LASALLE STREET, SUITE 3300, CHICAGO IL 60602
Patrick Berard director 500 W. MADISON STREET, SUITE 2800, CHICAGO IL 60661
Xavier Urbain director 500 W. 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
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
Meg Divitto director 500 WEST 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
Joseph M Holsten director, officer: President and CEO
Genevieve L Dombrowski officer: SVP -- Human Resources 500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661

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