Lithia Motors Inc (LAD)

Current ratio

		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
Total current assets	US$ in thousands	6,955,200	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	3,070,500	2,929,900	3,031,500	3,027,900
Total current liabilities	US$ in thousands	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	2,569,100	2,483,400	2,605,300	2,585,200
Current ratio		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	1.20	1.18	1.16	1.17

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,955,200K ÷ $4,932,200K
= 1.41

Lithia Motors, Inc.'s current ratio has been showing some fluctuations over the past eight quarters. The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets.

Based on the data provided, the current ratio has ranged from a low of 1.30 in Q1 2023 to a high of 1.66 in Q3 2022. The company's current ratio has generally been above 1, indicating that it has had sufficient current assets to cover its short-term liabilities.

A current ratio of 1.41 in Q4 2023 suggests that the company had $1.41 in current assets for every $1 in current liabilities during that quarter. This implies that the company's short-term financial obligations were adequately covered by its current assets.

It is important to note that while a current ratio above 1 indicates liquidity and short-term solvency, the ideal ratio varies by industry and company. The fluctuations in Lithia Motors, Inc.'s current ratio over the past quarters may warrant further analysis to understand the underlying reasons driving these changes. Additional information about the composition of current assets and liabilities would provide a more comprehensive insight into the company's liquidity position.