Business Analysis of LKQ

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of LKQ

Business Overview

LKQ Corporation, together with its subsidiaries, distributes replacement parts, components, and systems used in the repair and maintenance of vehicles in North America, Europe, and Taiwan. It operates in three segments: North America, Europe, and Specialty. The company distributes bumper covers, automotive body panels, lights, and automotive glass products, such as windshields; salvage products, including mechanical and collision parts comprising engines, transmissions, door assemblies, sheet metal products, lights, and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. It also operates self service retail operations under the LKQ Pick Your Part name. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, cargo management products, wheels, tires, and suspension products. It primarily serves collision and mechanical repair shops, new and used car dealerships, as well as retail customers. The company was founded in 1998 and is headquartered in Chicago, Illinois.

LKQ

LKQ


R&P Rank: 330
Sector: Automobiles and Parts
Industry:Auto Parts
H.Q Location:Illinois
Website: www.lkqcorp.com
Company Address:
500 WEST MADISON STREET, SUITE 2800, CHICAGO IL 60661
Ph:312-621-1950

Business Analysis of LKQ

The Automobiles and Parts Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how LKQ compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by LKQ to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of LKQ with an interactive chart.

  1. Revenue Growth: LKQ reported a revenue growth of 19.3% year-on-year during 2016. Auto Parts Industry grew at 1.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, LKQ spent 61.0% of its total revenues on COGS. Auto Parts industry average (COGS share of revenue) in the same period was 74.6%
  3. R&D share of Revenues: LKQ R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, LKQ spent 19.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Auto Parts industry average SG&A spending in the same period was 13.9%
  5. Inventory share of Revenues: As a percentage of revenue, LKQ spent 22.5% of its total revenues on Inventories. Auto Parts industry average Inventory spending in the same period was 14.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, LKQ invested 7.4% of its total revenues on Accounts Payable (A/P) Auto Parts industry average Accounts Payable investment in the same period was 17.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, LKQ invested 10.0% of its total revenues on Accounts Receivable (A/R). Auto Parts industry average Accounts Receivable investment in the same period was 12.8%
  8. PP&E share of Revenues: As a percentage of revenue, LKQ invested 9.5% of its total revenues on Property, Plants, and Equipments (PP&E). Auto Parts industry average PPE investment in the same period was 21.0%
  9. Intangibles share of Revenues: As a percentage of revenue, LKQ invested 42.4% of its total revenues on Intangibles. Auto Parts industry average Intangibles investment in the same period was 14.2%
  10. Net Margins: LKQ Net Margins in the year 2016 were 5.4%. Auto Parts industry average Net Margins in the same period were 5.3%

Sector and Industry Association of LKQ

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

LKQ is associated with Industrials Sector Group, Automobiles and Parts Sector, and Auto Parts Industry.

Automobiles and Parts sector is comprised of the following industries: Automobiles; Auto Parts. The definitions for each of the industries is as follows:

  • Automobiles industry includes manufacturers of passenger vehicle that includes Cars, SUVs etc. and recreational vehicles including motorcycles like Harley Davidson. Companies making boats and other recreational vehicles are also part of Automobiles industry.
  • Auto Parts industry includes manufacturers and distributors of automobile parts including engines, batteries and also tires.

Industry Ranking of LKQ

With $8.6 billion revenues, LKQ ranked number 12 of all the companies in the US Auto Parts industry. There were a total of 38 public companies in the US Auto Parts industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Auto Parts industry by revenues during 2016 were:

  1. Lear ($18.6 billion)
  2. Adient ($16.8 billion)
  3. Delphi Automotive ($16.7 billion)
  4. Genuine Parts ($15.3 billion)
  5. Goodyear Tire & Rubber ($15.2 billion)
  6. AutoZone ($10.6 billion)
  7. Autoliv ($10.1 billion)
  8. Advance Auto Parts ($9.6 billion)
  9. BorgWarner ($9.1 billion)
  10. Tenneco ($8.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of LKQand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of lkq

BorgWarner (BWA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Borgwarner Inc with $9 billion revenues in the year 2016 was the number 9 Auto Parts company. Read this report to know the top competitors of BorgWarner and identify growth and cost optimization opportunities of BorgWarner

Tenneco (TEN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Tenneco Inc with $9 billion revenues in the year 2016 was the number 10 Auto Parts company. Read this report to know the top competitors of Tenneco and identify growth and cost optimization opportunities of Tenneco

O’Reilly Automotive (ORLY) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

O'Reilly Automotive Inc with $9 billion revenues in the year 2016 was the number 11 Auto Parts company. Read this report to know the top competitors of O'Reilly Automotive and identify growth and cost optimization opportunities of O'Reilly Automotive

Dana (DAN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Dana Inc with $6 billion revenues in the year 2016 was the number 13 Auto Parts company. Read this report to know the top competitors of Dana and identify growth and cost optimization opportunities of Dana

American Axle & Manufacturing (AXL) Business Analysis – Analyze Historical Performance,...

American Axle & Manufacturing Holdings Inc with $4 billion revenues in the year 2016 was the number 14 Auto Parts company. Read this report to know the top competitors of American Axle & Manufacturing and identify growth and cost optimization opportunities of American Axle & Manufacturing

Cooper-Standard (CPS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Cooper-Standard Holdings Inc. with $3 billion revenues in the year 2016 was the number 15 Auto Parts company. Read this report to know the top competitors of Cooper-Standard and identify growth and cost optimization opportunities of Cooper-Standard

Revenues Analysis

LKQ (LKQ) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of LKQ Corp (LKQ) from 2012 to 2016. LKQ generated a total of $8.6 billion revenues during 2016. LKQ reported a revenue growth of 19.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

LKQ (LKQ) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of LKQ Corp (LKQ) from 2002 to 2016. LKQ generated a total of $8.6 billion revenues during 2016. LKQ reported a revenue growth of 19.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

LKQ (LKQ) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of LKQ Corp (LKQ) revenue growth with Auto Parts industry growth during the last five years from 2012 to 2016. LKQ reported a revenue growth of 19.3% year-over-year during 2016. The Auto Parts industry growth was 1.1% year-over-year during 2016. LKQ growth was faster than the industry during 2016.

Profit Analysis

LKQ (LKQ) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of LKQ Corp (LKQ) from 2012 to 2016. LKQ reported a total net income of $464 million during 2016. LKQ generated a total of $8.6 billion revenues during 2016. LKQ net profit margin was 5.4% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.