Lithia Motors Inc (LAD)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 802,000 | 1,000,800 | 1,251,000 | 1,060,100 | 470,300 |
| Total assets | US$ in thousands | 23,127,900 | 19,632,500 | 15,006,600 | 11,146,900 | 7,902,100 |
| ROA | 3.47% | 5.10% | 8.34% | 9.51% | 5.95% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $802,000K ÷ $23,127,900K
= 3.47%
Lithia Motors Inc's return on assets (ROA) has shown fluctuations over the past five years. In December 31, 2020, the ROA was 5.95%, which increased to 9.51% by December 31, 2021, indicating improved efficiency in generating profits from its assets. However, by December 31, 2022, the ROA slightly decreased to 8.34%, showcasing a dip in asset utilization. Subsequently, the ROA further declined to 5.10% by December 31, 2023, suggesting potential challenges in optimizing asset performance. By December 31, 2024, there was a notable drop in ROA to 3.47%, indicating a significant decrease in profitability relative to the company's asset base. Overall, the trend in ROA for Lithia Motors Inc reflects a mix of positive and negative performance indicators, with a downward trajectory in recent years, highlighting the importance of monitoring asset efficiency and profitability for sustainable financial health.
Peer comparison
Dec 31, 2024