Lithia Motors Inc (LAD)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 27.49 | 34.59 | 24.97 | 21.29 | 25.00 | |
| DSO | days | 13.28 | 10.55 | 14.62 | 17.15 | 14.60 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 27.49
= 13.28
The days of sales outstanding (DSO) ratio for Lithia Motors, Inc. has fluctuated over the past five years. In 2023, the DSO was 13.21 days, showing an increase from the previous year's 10.53 days. This may indicate that the company is taking longer to collect its accounts receivable in 2023 compared to 2022.
Looking back further, the DSO was 14.55 days in 2021 and 2019, with a peak of 17.08 days in 2020. The decreasing trend from 2020 to 2022 was positive as it showed an improvement in the company's collection efficiency. However, the recent increase in 2023 raises concerns about potential challenges in collecting receivables promptly.
Overall, the DSO trend suggests that Lithia Motors, Inc. has been managing its accounts receivable effectively in recent years, but the uptick in 2023 warrants further monitoring to ensure efficient cash flow management and timely collection of sales proceeds.
Peer comparison
Dec 31, 2023