Lithia Motors Inc (LAD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 225,100 | 972,000 | 271,500 | 153,000 | 160,200 |
| Short-term investments | US$ in thousands | 2,200 | 0 | — | — | — |
| Total current liabilities | US$ in thousands | 6,551,100 | 4,932,200 | 3,178,200 | 2,402,800 | 2,479,700 |
| Cash ratio | 0.03 | 0.20 | 0.09 | 0.06 | 0.06 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($225,100K
+ $2,200K)
÷ $6,551,100K
= 0.03
The cash ratio of Lithia Motors Inc has shown some fluctuations over the past five years. Starting at 0.06 on December 31, 2020, the ratio remained constant at the same level at the end of 2021. Subsequently, there was a slight increase to 0.09 by December 31, 2022, indicating a higher level of cash availability relative to current liabilities.
By December 31, 2023, the cash ratio significantly improved to 0.20, suggesting a stronger liquidity position with a notable ability to cover short-term obligations with cash on hand. However, there was a decline in the ratio to 0.03 by December 31, 2024, potentially indicating a decrease in the proportion of cash available to cover immediate liabilities.
Overall, the cash ratio fluctuated within a range over the five-year period, with the company experiencing both improvements and declines in its ability to meet short-term obligations solely from its cash reserves. It is essential for stakeholders to monitor these fluctuations to assess the company's liquidity position effectively.
Peer comparison
Dec 31, 2024