Lithia Motors Inc (LAD)

Payables 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
Cost of revenue (ttm)	US$ in thousands	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	7,950,300	10,479,900	10,284,200	10,191,900
Payables	US$ in thousands	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	125,300	127,000	129,400	119,300
Payables turnover		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	63.45	82.52	79.48	85.43

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $29,326,600K ÷ $288,000K
= 101.83

The payables turnover ratio for Lithia Motors, Inc. has shown fluctuations over the past eight quarters. The ratio indicates the company's efficiency in managing its trade payables by measuring how many times the company pays off its suppliers within a specific period.

In Q4 2023, the payables turnover ratio was 89.63, showing an improvement from the previous quarter's ratio of 81.78 in Q3 2023. This suggests that the company was able to pay off its suppliers at a faster rate in the most recent quarter.

Comparing to the same quarter in the previous year, Lithia Motors' payables turnover ratio was slightly higher in Q4 2023 (89.63) compared to Q4 2022 (89.15). This indicates that the company maintained a consistent level of efficiency in managing its trade payables year-over-year.

Overall, the trend in payables turnover ratios fluctuated throughout the periods analyzed, but the company has generally demonstrated efficiency in managing its trade payables over the past eight quarters.