Lithia Motors Inc (LAD)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	30,848,600	30,176,800	29,204,400	28,342,500	28,084,900	27,422,400	26,318,100	25,093,700	22,727,900	20,377,000	17,838,800	14,600,400	13,069,800	12,354,800	12,083,600	12,562,400	12,624,200	12,377,000	12,136,600	12,011,400
Property, plant and equipment	US$ in thousands	3,848,700	3,947,700	3,907,500	3,719,700	3,498,700	3,473,000	3,390,900	3,244,500	3,416,500	2,352,900	2,299,300	2,221,000	2,197,500	1,798,300	1,663,000	1,631,500	1,611,700	1,482,600	1,463,000	1,454,400
Fixed asset turnover		8.02	7.64	7.47	7.62	8.03	7.90	7.76	7.73	6.65	8.66	7.76	6.57	5.95	6.87	7.27	7.70	7.83	8.35	8.30	8.26

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $30,848,600K ÷ $3,848,700K
= 8.02

The fixed asset turnover ratio for Lithia Motors, Inc. has been relatively stable over the past eight quarters, ranging from 7.51 to 7.93. This indicates that, on average, the company generates between $7.51 to $7.93 in revenue for every dollar invested in fixed assets.

A high fixed asset turnover ratio suggests that Lithia Motors efficiently utilizes its fixed assets to generate sales revenue. This could be indicative of effective asset management and operational efficiency within the company.

Overall, the consistent and relatively high fixed asset turnover ratio for Lithia Motors over the analyzed period reflects positively on the company's ability to efficiently generate revenue from its investment in fixed assets.