Lithia Motors Inc (LAD)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 36,218,600 | 30,878,400 | 28,126,000 | 22,726,200 | 13,069,400 |
| Receivables | US$ in thousands | 1,245,700 | 1,123,100 | 813,100 | 910,000 | 614,000 |
| Receivables turnover | 29.07 | 27.49 | 34.59 | 24.97 | 21.29 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $36,218,600K ÷ $1,245,700K
= 29.07
Lithia Motors Inc's receivables turnover has shown an increasing trend over the past five years, from 21.29 at the end of December 31, 2020, to 29.07 by December 31, 2024. This indicates that the company is more efficiently converting its accounts receivable into cash during the specified period. The peak turnover ratio of 34.59 on December 31, 2022, suggests a particularly strong ability to collect outstanding receivables. Overall, the upward trajectory in the receivables turnover reflects effective credit management and collection practices within Lithia Motors Inc, optimizing its working capital and liquidity position.
Peer comparison
Dec 31, 2024