Lithia Motors Inc (LAD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 225,100 | 972,000 | 271,500 | 153,000 | 160,200 |
| Short-term investments | US$ in thousands | 2,200 | 0 | — | — | — |
| Receivables | US$ in thousands | 1,245,700 | 1,123,100 | 813,100 | 910,000 | 614,000 |
| Total current liabilities | US$ in thousands | 6,551,100 | 4,932,200 | 3,178,200 | 2,402,800 | 2,479,700 |
| Quick ratio | 0.22 | 0.42 | 0.34 | 0.44 | 0.31 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($225,100K
+ $2,200K
+ $1,245,700K)
÷ $6,551,100K
= 0.22
The quick ratio of Lithia Motors Inc has shown some fluctuation over the years. As of December 31, 2020, the quick ratio was 0.31, indicating that the company may have had difficulty meeting its short-term obligations with its most liquid assets.
By December 31, 2021, the quick ratio improved to 0.44, suggesting that the company had a better ability to cover its current liabilities with its quick assets. However, by December 31, 2022, the quick ratio decreased to 0.34, indicating a slight decline in the company's liquidity position.
In the following years, the quick ratio showed improvement, reaching 0.42 by December 31, 2023. This suggests that the company may have enhanced its ability to meet short-term obligations with its quick assets.
However, there was a notable decrease in the quick ratio to 0.22 as of December 31, 2024, which could raise concerns about the company's liquidity position in the near term. Overall, the trend in the quick ratio indicates some variability in Lithia Motors Inc's liquidity management over the years, highlighting the importance of closely monitoring short-term liquidity levels to ensure the company can meet its financial obligations effectively.
Peer comparison
Dec 31, 2024