Lithia Motors Inc (LAD)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,655,500 | 6,213,900 | 5,206,200 | 4,626,400 | 2,661,500 |
| ROE | 12.05% | 16.11% | 24.03% | 22.91% | 17.67% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $802,000K ÷ $6,655,500K
= 12.05%
Lithia Motors Inc has shown a fluctuating trend in its Return on Equity (ROE) over the years. The ROE increased from 17.67% in December 2020 to 22.91% in December 2021, reflecting improved profitability relative to its equity. This positive momentum continued in December 2022, reaching 24.03%, indicating the company effectively generated profit from shareholders' equity.
However, the ROE declined in the following years, dropping to 16.11% in December 2023 and further to 12.05% in December 2024. This downward trend suggests a decrease in the company's ability to generate profits from shareholders' investments. It is essential for investors to closely monitor the factors influencing this trend to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024