Lithia Motors Inc (LAD)
Debt-to-capital 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 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.35 | 0.35 | 0.34 | 0.35 | 0.33 | 0.39 | 0.41 | 0.42 | 0.44 | 0.44 | 0.45 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,655,500K)
= 0.00
The debt-to-capital ratio of Lithia Motors Inc has been showing a decreasing trend over the past few years, indicating a strengthening financial position in terms of capital structure.
From March 31, 2020, to September 30, 2021, the ratio declined steadily from 0.45 to 0.33, suggesting a reduction in debt relative to total capital employed. This decrease may signal improved financial stability and a lower reliance on debt financing.
However, from December 31, 2021, the ratio remained at 0.35 until the end of 2022, indicating a stabilization of the debt-to-capital ratio. The sudden drop to 0.00 starting from March 31, 2023, and continuing into 2024, could be due to various factors such as debt repayment, capital restructuring, or a significant increase in capital without a corresponding increase in debt.
Overall, a debt-to-capital ratio of 0.00 suggests either no debt on the balance sheet or a negligible amount in relation to total capital. This can indicate a very low financial risk, potentially allowing the company more flexibility in its operations and investments.
Peer comparison
Dec 31, 2024