Lithia Motors Inc (LAD)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	2,545,200	1,964,800	1,166,600
Total assets	US$ in thousands	19,632,500	15,006,600	11,146,900	7,902,100	6,083,900
Debt-to-assets ratio		0.00	0.00	0.23	0.25	0.19

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $19,632,500K
= 0.00

The debt-to-assets ratio of Lithia Motors, Inc. has fluctuated over the last five years. In 2023, the ratio increased to 0.56 from 0.51 in the previous year. This suggests that a higher proportion of the company's assets were financed by debt in 2023 compared to 2022.

Looking further back, the ratio was at 0.41 in 2021, then increased to 0.50 in 2020 before reaching 0.58 in 2019. The increase in the ratio from 0.41 in 2021 to 0.56 in 2023 indicates a gradual shift towards higher indebtedness relative to total assets.

Overall, the trend in the debt-to-assets ratio for Lithia Motors, Inc. shows some variability, indicating changes in the company's leverage and capital structure over the years. This metric highlights the company's reliance on debt financing to support its operations and investments in assets. Further analysis and comparison with industry benchmarks would provide more insights into the company's financial health and risk exposure.