Lithia Motors Inc (LAD)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,655,500 | 6,604,700 | 6,367,900 | 6,351,400 | 6,213,900 | 5,996,400 | 5,755,600 | 5,437,300 | 5,206,200 | 4,983,700 | 4,691,900 | 4,904,400 | 4,626,400 | 4,542,700 | 4,228,400 | 2,807,600 | 2,661,500 | 1,694,400 | 1,532,200 | 1,456,500 |
| ROE | 12.05% | 12.10% | 13.38% | 14.72% | 16.11% | 17.26% | 19.17% | 20.91% | 24.02% | 25.97% | 27.12% | 25.41% | 22.91% | 21.06% | 19.10% | 20.67% | 17.67% | 20.70% | 18.09% | 17.94% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $802,100K ÷ $6,655,500K
= 12.05%
Lithia Motors Inc has shown variability in its Return on Equity (ROE) over the specified period. The ROE increased from 17.94% in March 2020 to a peak of 27.12% in June 2022, indicating an improvement in the company's ability to generate profit from shareholders' equity.
However, the ROE started to decline thereafter, reaching 12.05% by December 2024. This decreasing trend suggests a potential decrease in profitability relative to the shareholders' equity invested in the company. It is crucial for investors and the company's management to closely monitor this trend and identify the underlying factors influencing the ROE fluctuations to ensure sustainable and efficient use of equity.
Peer comparison
Dec 31, 2024