Lithia Motors Inc (LAD)
Total asset 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 |
| Total assets | US$ in thousands | 23,127,900 | 23,261,500 | 23,205,200 | 22,180,000 | 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 |
| Total asset turnover | 1.56 | 1.49 | 1.45 | 1.46 | 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 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $36,158,900K ÷ $23,127,900K
= 1.56
Lithia Motors Inc's total asset turnover ratio has shown some fluctuations over the years based on the provided data. The total asset turnover ratio indicates how efficiently the company is utilizing its assets to generate revenue. A higher ratio suggests better efficiency in asset utilization.
From March 31, 2020, to June 30, 2022, the total asset turnover ratio generally increased from 2.09 to 2.02, indicating that the company was utilizing its assets more efficiently to generate sales. However, there was a slight dip in the ratio in the following period up to December 31, 2022. This could signal a potential decline in asset utilization efficiency during that time frame.
From March 31, 2023, to December 31, 2024, the total asset turnover ratio continued to decrease, reaching 1.56 by the end of December 31, 2024. This decline may suggest that the company's efficiency in utilizing its assets to generate revenue deteriorated during this period.
Overall, while there were periods of improvement in asset turnover, the general trend seems to show a gradual decline in asset utilization efficiency in recent years. It would be advisable for the company to assess its asset management strategies to potentially improve its total asset turnover ratio in the future.
Peer comparison
Dec 31, 2024