Lithia Motors Inc (LAD)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	6,213,900	5,206,200	4,626,400	2,661,500	1,467,700
Debt-to-capital ratio		0.00	0.00	0.35	0.42	0.44

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,213,900K)
= 0.00

The debt-to-capital ratio of Lithia Motors, Inc. has been fluctuating over the past five years. In 2023, the ratio increased to 0.64 from 0.59 in 2022, indicating a higher proportion of debt in the capital structure compared to the previous year.

In 2021, the ratio was at its lowest point at 0.50, suggesting a lower reliance on debt to finance the company's operations. However, there was an increase in 2022, followed by another uptick in 2023.

The ratio was relatively high in 2019 at 0.71, but it decreased in the following years before the recent uptrend in 2022 and 2023. Overall, the trend in the debt-to-capital ratio suggests fluctuations in the company's capital structure and varying levels of debt utilization over the years.