Lithia Motors Inc (LAD)

Quick 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
Cash	US$ in thousands	972,000	286,700	229,200	324,700	271,500	172,700	64,400	131,600	153,000	137,800	780,900	170,300	160,200	57,100	120,300	56,600	84,000	27,100	44,700	45,000
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	66,100	—	—	—
Receivables	US$ in thousands	1,123,100	999,300	884,600	843,100	813,100	1,004,600	978,400	923,800	910,000	812,600	799,700	740,700	614,000	511,700	446,400	298,200	505,000	459,700	489,200	491,000
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
Quick ratio		0.42	0.29	0.28	0.30	0.34	0.42	0.40	0.37	0.44	0.44	0.61	0.35	0.31	0.26	0.28	0.15	0.25	0.20	0.20	0.21

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($972,000K + $—K + $1,123,100K) ÷ $4,932,200K
= 0.42

The quick ratio of Lithia Motors, Inc. has shown fluctuation over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

In Q4 2023, the quick ratio was 0.45, which improved from the previous quarter's ratio of 0.30. However, it is still below 1, suggesting that the company may face challenges in meeting its short-term obligations.

Looking back over the last eight quarters, the quick ratio has ranged from 0.30 to 0.49. The lowest quick ratio of 0.30 was observed in both Q2 and Q3 of 2023, indicating potential liquidity concerns during those periods.

Overall, the trend in Lithia Motors' quick ratio indicates some variability in its ability to cover short-term obligations with its liquid assets. It would be important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term financial obligations effectively.