Lithia Motors Inc (LAD)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | 2,545,200 | 1,964,800 |
| Total assets | US$ in thousands | 23,127,900 | 19,632,500 | 15,006,600 | 11,146,900 | 7,902,100 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.23 | 0.25 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $23,127,900K
= 0.00
Based on the data provided for Lithia Motors Inc's debt-to-assets ratio, we can see a decreasing trend over the years. In December 31, 2020, the ratio was 0.25, indicating that 25% of the company's assets were financed by debt. By December 31, 2021, the ratio decreased to 0.23, suggesting a slight improvement in the company's debt management.
Interestingly, by December 31, 2022, the debt-to-assets ratio dropped significantly to 0.00, implying that the company had no debt relative to its total assets. This trend continued in the following years, with the ratio remaining at 0.00 as of December 31, 2023 and December 31, 2024.
This data indicates that Lithia Motors Inc has been successful in reducing its reliance on debt to finance its operations and investments, potentially improving its financial stability and reducing the risks associated with high debt levels. A lower debt-to-assets ratio generally signifies a healthier financial position and greater solvency for the company.
Peer comparison
Dec 31, 2024