Lithia Motors Inc (LAD)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,575,500 | 1,531,700 | 1,572,800 | 1,655,000 | 1,692,600 | 1,720,500 | 1,770,100 | 1,813,400 | 1,941,100 | 2,039,000 | 2,003,600 | 1,930,800 | 1,662,400 | 1,394,700 | 1,154,800 | 838,200 | 692,800 | 584,900 | 492,100 | 479,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | 2,721,600 | 2,479,900 | 2,543,500 | 2,545,200 | 2,233,000 | 2,653,200 | 1,958,300 | 1,964,800 | 1,305,900 | 1,223,700 | 1,179,000 |
| 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 |
| Return on total capital | 23.67% | 23.19% | 24.70% | 26.06% | 27.24% | 28.69% | 30.75% | 33.35% | 37.28% | 26.46% | 27.94% | 25.92% | 23.18% | 20.58% | 16.78% | 17.59% | 14.98% | 19.49% | 17.86% | 18.19% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,575,500K ÷ ($—K + $6,655,500K)
= 23.67%
Lithia Motors Inc's return on total capital has shown some fluctuations over the past few years. The trend indicates that the company's efficiency in generating returns from its total capital has varied.
Starting from around 18% in March 2020, the return on total capital slightly decreased to 14.98% by December 2020. However, the ratio rebounded in the following quarters, reaching as high as 37.28% by December 2022. This significant increase suggests a period of enhanced capital utilization efficiency.
Subsequently, the return on total capital experienced a downward trend, fluctuating between 26% and 23% from March 2023 to December 2024. Despite this, the ratios remain relatively healthy, indicating that Lithia Motors Inc continues to effectively use its total capital to generate returns, albeit at a slightly lower rate compared to the peak achieved in December 2022.
Overall, fluctuations in the return on total capital of Lithia Motors Inc suggest varying levels of capital efficiency over the analyzed periods, with the company exhibiting the ability to successfully generate returns on its total capital but with some variability in performance.
Peer comparison
Dec 31, 2024