Lithia Motors Inc (LAD)
Number of days of payables
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 103.80 | 110.15 | 84.66 | 94.56 | 101.83 | 93.01 | 92.52 | 83.23 | 101.62 | 105.66 | 91.63 | 89.36 | 90.00 | 76.93 | 65.51 | 69.34 | 78.58 | 58.08 | 65.42 | 75.87 | |
| Number of days of payables | days | 3.52 | 3.31 | 4.31 | 3.86 | 3.58 | 3.92 | 3.95 | 4.39 | 3.59 | 3.45 | 3.98 | 4.08 | 4.06 | 4.74 | 5.57 | 5.26 | 4.64 | 6.28 | 5.58 | 4.81 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 103.80
= 3.52
The number of days of payables for Lithia Motors Inc has shown some fluctuations over the periods analyzed. From March 31, 2020 to December 31, 2024, the number of days of payables has ranged from 3.31 days to 6.28 days.
The trend indicates that the company has been effectively managing its payables, with a general decrease over time. This suggests that Lithia Motors Inc has been able to negotiate favorable payment terms with its suppliers or has improved its internal processes to settle payables more efficiently.
The lower number of days of payables signifies that the company is taking less time to pay its vendors, which could indicate strong liquidity or good supplier relationships. However, a significant decrease in this ratio should be investigated further to ensure that it is not adversely impacting supplier relations or liquidity management.
Overall, the trend in the number of days of payables for Lithia Motors Inc reflects a proactive approach to managing its working capital and relationships with suppliers.
Peer comparison
Dec 31, 2024