Lithia Motors Inc (LAD)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,772,200 | 7,893,100 | 8,355,400 | 7,733,200 | 6,937,600 | 5,818,200 | 5,494,000 | 5,147,700 | 4,630,900 | 4,682,300 | 4,161,800 | 3,884,600 | 3,309,700 | 3,075,500 | 3,870,800 | 3,288,900 | 3,339,900 | 2,750,400 | 2,430,100 | 2,925,800 |
| Total current liabilities | US$ in thousands | 6,551,100 | 6,664,100 | 7,019,900 | 6,591,500 | 4,932,200 | 4,375,300 | 4,048,200 | 3,948,000 | 3,178,200 | 2,826,600 | 2,614,400 | 2,825,100 | 2,402,800 | 2,181,800 | 2,595,800 | 2,610,900 | 2,479,700 | 2,212,400 | 2,026,400 | 2,431,500 |
| Current ratio | 1.19 | 1.18 | 1.19 | 1.17 | 1.41 | 1.33 | 1.36 | 1.30 | 1.46 | 1.66 | 1.59 | 1.38 | 1.38 | 1.41 | 1.49 | 1.26 | 1.35 | 1.24 | 1.20 | 1.20 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,772,200K ÷ $6,551,100K
= 1.19
Lithia Motors Inc's current ratio has exhibited some fluctuations over the period from March 31, 2020, to December 31, 2024. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
The current ratio started at 1.20 as of March 31, 2020, remaining consistent at that level for the subsequent quarter ending on June 30, 2020. From September 30, 2020, to December 31, 2020, there was a gradual increase in the current ratio, indicating a stronger ability to cover short-term liabilities.
The ratio continued to rise, reaching 1.66 as of September 30, 2022, the highest point in the given data period. This suggests that the company had significantly increased its current assets relative to its current liabilities by that quarter.
However, there was a slight decline in the current ratio in the following quarters, dropping to 1.17 by March 31, 2024. This decrease may indicate a potential strain on the company's short-term liquidity position during that period.
Overall, the current ratio for Lithia Motors Inc fluctuated within a range of 1.17 to 1.66, with some variability over the years. It is essential to monitor future trends in the current ratio to assess the company's ongoing liquidity position and ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024