Lithia Motors Inc (LAD)

Total asset 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
Revenue (ttm)	US$ in thousands	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	12,624,200	12,377,000	12,136,600	12,011,400
Total assets	US$ in thousands	19,632,500	18,269,800	17,682,700	16,421,400	15,006,600	14,074,500	13,007,700	12,080,800	11,146,900	10,204,600	10,092,500	8,251,600	7,902,100	6,395,700	5,539,000	6,014,100	6,083,900	5,737,500	5,774,600	5,692,000
Total asset turnover		1.57	1.65	1.65	1.73	1.87	1.95	2.02	2.08	2.04	2.00	1.77	1.77	1.65	1.93	2.18	2.09	2.08	2.16	2.10	2.11

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $30,848,600K ÷ $19,632,500K
= 1.57

Lithia Motors, Inc. has demonstrated a declining trend in total asset turnover from Q1 2022 to Q4 2023. The total asset turnover ratio indicates the efficiency of the company in generating revenue relative to its total assets. A higher total asset turnover ratio generally suggests that the company is utilizing its assets more efficiently to generate sales.

The peak total asset turnover ratio was observed in Q1 2022 at 2.09, indicating that the company generated $2.09 in revenue for every $1 worth of total assets during that quarter. However, this ratio declined steadily to 1.58 by Q4 2023. This decline may indicate inefficiencies in asset utilization or a decrease in revenue generation efficiency relative to the company's total asset base.

This downward trend in total asset turnover should prompt further investigation into the company's operational efficiency, asset management practices, and revenue generation strategies. It is important for investors and stakeholders to closely monitor these ratios to assess the company's overall financial health and performance.