Lithia Motors Inc (LAD)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	1,000,900	1,035,000	1,103,100	1,137,200	1,250,700	1,294,200	1,272,500	1,246,100	1,060,100	956,600	807,500	580,300	470,300	350,700	277,100	261,300	271,500	263,400	271,300	270,100
Total assets	US$ in thousands	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	6,083,900	5,737,500	5,774,600	5,692,000
ROA		5.10%	5.67%	6.24%	6.93%	8.33%	9.20%	9.78%	10.31%	9.51%	9.37%	8.00%	7.03%	5.95%	5.48%	5.00%	4.34%	4.46%	4.59%	4.70%	4.75%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,000,900K ÷ $19,632,500K
= 5.10%

Lithia Motors, Inc.'s return on assets (ROA) has shown a downward trend over the past eight quarters, decreasing from 10.31% in Q1 2022 to 5.10% in Q4 2023. This decline indicates that the company's ability to generate profits from its assets has weakened over time.

The decreasing ROA could be attributed to various factors such as increasing operating expenses, declining sales, or inefficient asset utilization. It is essential for investors and stakeholders to closely monitor these trends in ROA as it reflects the company's overall profitability and efficiency in utilizing its assets to generate earnings.

Lithia Motors, Inc. may need to assess its operational efficiency, asset management strategies, and profitability drivers to reverse the downward trend in ROA and improve its overall financial performance in the future.