Lithia Motors Inc (LAD)

Receivables 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
Revenue (ttm)	US$ in thousands	36,158,900	34,572,100	33,569,600	32,405,400	30,848,600	30,176,800	29,204,400	28,342,500	28,084,900	27,422,400	26,318,100	25,093,700	22,727,900	20,377,000	17,838,800	14,600,400	13,069,800	12,354,800	12,083,600	12,562,400
Receivables	US$ in thousands	1,245,700	1,209,400	1,242,900	1,249,300	1,123,100	999,300	884,600	843,100	813,100	1,004,600	978,400	923,800	910,000	812,600	799,700	740,700	614,000	511,700	446,400	298,200
Receivables turnover		29.03	28.59	27.01	25.94	27.47	30.20	33.01	33.62	34.54	27.30	26.90	27.16	24.98	25.08	22.31	19.71	21.29	24.14	27.07	42.13

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $36,158,900K ÷ $1,245,700K
= 29.03

The receivables turnover ratio for Lithia Motors Inc has exhibited a general declining trend from March 2020 to December 2024, indicating a decrease in the efficiency of the company in collecting receivables over time. The ratio decreased from 42.13 in March 2020 to 29.03 in December 2024.

A high receivables turnover ratio is typically desirable as it indicates that the company is collecting its outstanding receivables quickly. Conversely, a declining ratio may suggest potential issues with the company's credit policies, collection processes, or the creditworthiness of its customers.

It is important for Lithia Motors Inc to closely monitor its receivables turnover ratio and take appropriate measures to improve efficiency in collecting receivables to ensure a healthy cash flow and overall financial health.