Lithia Motors Inc (LAD)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 36,218,600 | 30,878,400 | 28,126,000 | 22,726,200 | 13,069,400 |
| Property, plant and equipment | US$ in thousands | 4,515,900 | 3,848,700 | 3,498,700 | 3,416,500 | 2,197,500 |
| Fixed asset turnover | 8.02 | 8.02 | 8.04 | 6.65 | 5.95 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $36,218,600K ÷ $4,515,900K
= 8.02
The fixed asset turnover of Lithia Motors Inc has shown a positive trend over the past five years, increasing from 5.95 in December 2020 to 8.02 in December 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets. The rising trend suggests improved efficiency in utilizing its fixed assets to generate sales. It also implies that the company has been able to either increase its sales or reduce its investment in fixed assets, or a combination of both, leading to higher turnover. Overall, the consistent improvement in fixed asset turnover reflects positively on Lithia Motors Inc's operational efficiency and asset utilization.
Peer comparison
Dec 31, 2024