Lithia Motors Inc (LAD)
Working capital 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 current assets | US$ in thousands | 7,772,200 | 6,937,600 | 4,630,900 | 3,309,700 | 3,339,900 |
| Total current liabilities | US$ in thousands | 6,551,100 | 4,932,200 | 3,178,200 | 2,402,800 | 2,479,700 |
| Working capital turnover | 29.66 | 15.40 | 19.36 | 25.06 | 15.19 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $36,218,600K ÷ ($7,772,200K – $6,551,100K)
= 29.66
The working capital turnover of Lithia Motors Inc has shown a varying trend over the past five years. In December 2020, the working capital turnover was 15.19, indicating that the company generated $15.19 in revenue for every dollar of working capital invested.
By the end of December 2021, the working capital turnover improved significantly to 25.06, suggesting that the company became more efficient in utilizing its working capital to generate revenue. This improvement continued into December 2022, with a working capital turnover of 19.36.
However, in December 2023, there was a decline in the working capital turnover to 15.40, which could signal a decrease in efficiency in utilizing working capital for revenue generation.
The most recent data point, December 2024, shows a notable increase in working capital turnover to 29.66, marking a significant improvement in efficiency in using working capital to generate revenue.
Overall, it is essential for Lithia Motors Inc to closely monitor and manage its working capital turnover to ensure optimal utilization of resources and sustained revenue generation efficiency.
Peer comparison
Dec 31, 2024