Lithia Motors Inc (LAD)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	34,639,200	33,189,200	32,203,400	30,977,700	29,326,600	28,580,700	27,543,200	26,635,000	26,258,800	25,496,500	24,418,500	23,278,700	21,185,600	19,085,600	16,770,200	13,826,100	12,431,500	8,723,700	8,164,000	8,262,700
Payables	US$ in thousands	333,700	301,300	380,400	327,600	288,000	307,300	297,700	320,000	258,400	241,300	266,500	260,500	235,400	248,100	256,000	199,400	158,200	150,200	124,800	108,900
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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $34,639,200K ÷ $333,700K
= 103.80

The payables turnover ratio for Lithia Motors Inc has fluctuated over the past few years, indicating variations in how efficiently the company is managing its accounts payable. The ratio ranged from a low of 58.08 in September 2020 to a high of 110.15 in September 2024. Generally, a higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which can be a positive sign of liquidity and strong supplier relationships. Conversely, a lower ratio may indicate that the company is taking longer to pay its suppliers, potentially straining relationships or signaling liquidity issues. For Lithia Motors Inc, there seems to be some volatility in the payables turnover ratio, so it would be important to further analyze the reasons behind these fluctuations to understand the company's payment practices and financial health in more detail.