Lithia Motors Inc (LAD)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 23,127,900 | 23,261,500 | 23,205,200 | 22,180,000 | 19,632,500 | 18,269,800 | 17,682,700 | 16,421,400 | 15,006,600 | 14,074,500 | 13,007,700 | 12,080,800 | 11,146,900 | 10,204,600 | 10,092,500 | 8,251,600 | 7,902,100 | 6,395,700 | 5,539,000 | 6,014,100 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.19 | 0.19 | 0.21 | 0.23 | 0.22 | 0.26 | 0.24 | 0.25 | 0.20 | 0.22 | 0.20 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $23,127,900K
= 0.00
The debt-to-assets ratio for Lithia Motors Inc has shown fluctuations over the reporting periods, ranging from 0.19 to 0.26. This ratio indicates the proportion of the company's total assets that are financed by debt. A lower ratio suggests lower financial risk, as it indicates that a smaller portion of the company's assets are financed through debt.
From the data provided, we can observe that the ratio peaked at 0.26 in June 30, 2021, indicating the highest level of debt financing relative to assets during that period. Subsequently, the ratio fluctuated, with a general downward trend observed in recent periods. Notably, the ratio dropped to 0.00 from December 31, 2022 onwards, indicating either a significant reduction in debt levels or a substantial increase in total assets.
The decreasing trend in the debt-to-assets ratio since June 30, 2021 may suggest that the company is paying down debt or experiencing growth in its asset base without a corresponding increase in debt. It is important to monitor this ratio in conjunction with other financial metrics to assess the overall financial health and leverage position of Lithia Motors Inc.
Peer comparison
Dec 31, 2024