Lithia Motors Inc (LAD)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 34,639,200 | 29,332,500 | 26,258,800 | 21,185,400 | 12,431,500 |
| Payables | US$ in thousands | 333,700 | 288,000 | 258,400 | 235,400 | 158,200 |
| Payables turnover | 103.80 | 101.85 | 101.62 | 90.00 | 78.58 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $34,639,200K ÷ $333,700K
= 103.80
The payables turnover ratio for Lithia Motors Inc has shown a consistent upward trend over the past five years, increasing from 78.58 in December 31, 2020, to 103.80 in December 31, 2024. This indicates that the company is managing its accounts payable more efficiently, as it takes fewer days to pay its suppliers. A higher payables turnover ratio suggests that the company is paying off its creditors more quickly, which could positively impact its working capital management and relationships with suppliers. Overall, the increasing trend in the payables turnover ratio for Lithia Motors Inc reflects improved liquidity and potentially stronger financial health.
Peer comparison
Dec 31, 2024