Lithia Motors Inc (LAD)

Return on assets (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
Net income (ttm)	US$ in thousands	802,100	799,400	851,800	934,800	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
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
ROA		3.47%	3.44%	3.67%	4.21%	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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $802,100K ÷ $23,127,900K
= 3.47%

Lithia Motors Inc's Return on Assets (ROA) has shown a fluctuating trend over the periods from March 31, 2020, to December 31, 2024. The ROA started at 4.34% in March 2020 and gradually increased to a peak of 10.31% in March 2022. However, after reaching this peak, the ROA started to decline. As of December 31, 2024, the ROA stood at 3.47%.

The increasing trend in ROA from 2020 to 2022 indicates that the company was becoming more efficient in generating profits from its assets. The decline in ROA from 2022 onwards could suggest potential challenges in asset utilization or declining profitability.

It is essential for investors and stakeholders to monitor changes in ROA to assess the company's efficiency in generating profits relative to its total assets. A consistent or improving ROA typically indicates effective asset management and profitability, while a declining ROA may raise concerns about the company's operational performance.