Lithia Motors Inc (LAD)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 30,878,400 | 28,126,000 | 22,726,200 | 13,069,400 | 12,624,200 |
| Total assets | US$ in thousands | 19,632,500 | 15,006,600 | 11,146,900 | 7,902,100 | 6,083,900 |
| Total asset turnover | 1.57 | 1.87 | 2.04 | 1.65 | 2.08 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $30,878,400K ÷ $19,632,500K
= 1.57
The total asset turnover of Lithia Motors, Inc. has demonstrated some fluctuations over the past five years. The ratio measures how efficiently the company is utilizing its assets to generate revenue.
In 2023, the total asset turnover was 1.58, indicating that for every dollar of assets, the company generated $1.58 in sales. This is a decrease from the previous year, suggesting a decrease in asset utilization efficiency.
In 2022, the total asset turnover was 1.88, showing an improvement from the prior year. The company was able to generate $1.88 in sales for every dollar of assets held, indicating higher efficiency in asset utilization.
The ratio was highest in 2021 at 2.05, signifying a peak in asset utilization efficiency during that year. The company effectively generated $2.05 in sales for every dollar of assets.
In 2020, the total asset turnover was 1.66, indicating a slight decline in efficiency compared to 2021. The company generated $1.66 in sales for every dollar of assets.
In 2019, the total asset turnover was 2.08, the highest among the years analyzed. This suggests that the company was exceptionally efficient in utilizing its assets to generate revenue, producing $2.08 in sales for every dollar of assets.
Overall, the trend in total asset turnover for Lithia Motors, Inc. shows some variability, with efficiency levels fluctuating over the years, but generally, the company has been able to generate sales efficiently in relation to its asset base. Further analysis is required to understand the factors contributing to these fluctuations and to assess the company's overall operational performance.
Peer comparison
Dec 31, 2023