Lithia Motors Inc (LAD)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	1,575,500	1,531,700	1,572,800	1,655,000	1,692,600	1,720,500	1,770,100	1,813,400	1,941,100	2,039,000	2,003,600	1,930,800	1,662,400	1,394,700	1,154,800	838,200	692,800	584,900	492,100	479,300
Total assets	US$ in thousands	23,127,900	23,261,500	23,205,200	22,180,000	19,632,500	18,269,800	17,682,700	16,421,400	15,006,600	14,074,500	13,007,700	12,080,800	11,146,900	10,204,600	10,092,500	8,251,600	7,902,100	6,395,700	5,539,000	6,014,100
Operating ROA		6.81%	6.58%	6.78%	7.46%	8.62%	9.42%	10.01%	11.04%	12.93%	14.49%	15.40%	15.98%	14.91%	13.67%	11.44%	10.16%	8.77%	9.15%	8.88%	7.97%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,575,500K ÷ $23,127,900K
= 6.81%

Operating ROA for Lithia Motors Inc has shown a generally positive trend from March 31, 2020, to December 31, 2022, with a peak at 15.98% in March 31, 2022. The metric reflects the company's ability to generate profits from its operations relative to its total assets. However, there has been a decline in the operating ROA since the peak, indicating a decrease in the company's operational efficiency in generating profits from its assets. As of December 31, 2024, the operating ROA stands at 6.81%, highlighting a potential area of concern for the company's profitability and operational performance. Further analysis is required to understand the factors contributing to this decline and to implement strategies to improve the operating ROA in the future.