Lithia Motors Inc (LAD)
Total asset 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 |
| Total assets | US$ in thousands | 23,127,900 | 19,632,500 | 15,006,600 | 11,146,900 | 7,902,100 |
| Total asset turnover | 1.57 | 1.57 | 1.87 | 2.04 | 1.65 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $36,218,600K ÷ $23,127,900K
= 1.57
The total asset turnover ratio for Lithia Motors Inc has shown some fluctuations over the years, ranging from 1.57 to 2.04. In 2021, the ratio reached its peak at 2.04, indicating that the company generated $2.04 in sales for every dollar of total assets invested. This suggests a high level of efficiency in utilizing its assets to generate revenue.
However, in 2023 and 2024, the total asset turnover ratio decreased to 1.57, which may signal a decline in asset productivity and efficiency. It is important for the company to analyze the reasons behind this decline and take corrective actions to improve asset utilization.
Overall, the trend of the total asset turnover ratio for Lithia Motors Inc shows variability, highlighting the importance of closely monitoring asset management and operational efficiency to maximize revenue generation from existing assets.
Peer comparison
Dec 31, 2024