Lithia Motors (Lithia Motors) Days Inventory

: 65.15 (As of Dec. 2023)

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Days Inventory is also known as Days Sales of Inventory (DSI). Lithia Motors's Average Total Inventories for the three months ended in Dec. 2023 was $4,579 Mil. Lithia Motors's Cost of Goods Sold for the three months ended in Dec. 2023 was $6,414 Mil. Hence, Lithia Motors's Days Inventory for the three months ended in Dec. 2023 was 65.15.

The historical rank and industry rank for Lithia Motors's Days Inventory or its related term are showing as below:

LAD' s Days Inventory Range Over the Past 10 Years
Min: 45.91 Med: 80.98 Max: 84.26
Current: 58.56

During the past 13 years, Lithia Motors's highest Days Inventory was 84.26. The lowest was 45.91. And the median was 80.98.

LAD's Days Inventory is ranked better than
68.76% of 1258 companies
in the Vehicles & Parts industry
Industry Median: 82.23 vs LAD: 58.56

Lithia Motors's Days Inventory increased from Dec. 2022 (53.43) to Dec. 2023 (65.15). It might indicate that Lithia Motors's sales slowed down.

Inventory Turnover measures how fast the company turns over its inventory within a year. Lithia Motors's Inventory Turnover for the three months ended in Dec. 2023 was 1.40.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Lithia Motors's Inventory-to-Revenue for the three months ended in Dec. 2023 was 0.60.

Lithia Motors Days Inventory Historical Data

The historical data trend for Lithia Motors's Days Inventory can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Lithia Motors Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Days Inventory

81.71

82.47

47.94

45.91

57.71

Lithia Motors Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Days Inventory																53.43	57.52	55.18	57.37	65.15

Competitive Comparison

For the Auto & Truck Dealerships subindustry, Lithia Motors's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Lithia Motors Days Inventory Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Days Inventory distribution charts can be found below:

* The bar in red indicates where Lithia Motors's Days Inventory falls into.

Lithia Motors Days Inventory Calculation

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Lithia Motors's Days Inventory for the fiscal year that ended in Dec. 2023 is calculated as

	Days Inventory (A: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2023 )	*	Days in Period
=	( (3409.4	+	4753.9)	/	2 )	/	25813.4	*	365
=	4081.65					/	25813.4	*	365
=	57.71

Lithia Motors's Days Inventory for the quarter that ended in Dec. 2023 is calculated as:

	Days Inventory (Q: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
=	( (4404.5	+	4753.9)	/	2 )	/	6413.6	*	365 / 4
=	4579.2					/	6413.6	*	365 / 4
=	65.15

Lithia Motors (NYSE:LAD) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

Lithia Motors's Inventory Turnover for the three months ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	6413.6	/	4579.2
	=	1.40

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Lithia Motors's Inventory to Revenue for the three months ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	4579.2	/	7674.3
	=	0.60

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

Lithia Motors Days Inventory Related Terms

Thank you for viewing the detailed overview of Lithia Motors's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

Lithia Motors (Lithia Motors) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Lithia Motors Inc (NYSE:LAD) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

LMO:Germany

Address

150 N. Bartlett Street, Medford, OR, USA, 97501

Website

https://www.lithia.com

Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 45 brands of vehicles at about 350 stores globally including 28 U.S. states at year-end 2022 and entered Canada in mid-2021 with the purchase of Pfaff Automotive and bought Jardine and soon Pendragon in the U.K. in 2023. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the U.S. and we expect more deals over time in the U.S. and abroad. Annual revenue in 2022 was $28.2 billion and we see over $50 billion possible in 2025. In 2022, new-car sales were about 46% of total revenue. Lithia was founded in 1946, went public in 1996, and is now the largest U.S. auto dealer. It is based in Medford, Oregon.

Executives

Shauna Mcintyre	director	150 N. BARTLETT STREET, MEDFORD OR 97501
Sidney B Deboer	director, officer: Executive Chairman	234 VISTA ST., ASHLAND OR 97520
Bryan B Deboer	director, officer: Chief Executive officer	150 N. BARTLETT STREET, MEDFORD OR 97501
Tina Miller	officer: VP, CAO & Principal Fin. Off.	150 N. BARTLETT ST., MEDFORD OR 97501
Chris Holzshu	officer: Sr. Vice President & CFO	150 N. BARTLETT STREET, MEDFORD OR 97501
David Stork	officer: Senior Vice President	150 N. BARTLETT STREET, MEDFORD OR 97501
George N Hines	officer: SVP, Chief Tech. & Innov. Off.	150 N. BARTLETT ST., MEDFORD OR 97501
Loretz Congdon Stacy	director	C/O CORE-MARK HOLDING CO. INC., 395 OYSTER POINT BLVD., SUITE 415, SOUTH SAN FRANCISCO CA 94080
Gary M Glandon	officer: Chief People Officer	C/O LITHIA MOTORS, INC., 150 NORTH BARTLETT STREET, MEDFORD OR 97501
James E. Lentz	director	C/O LITHIA MOTORS INC., 150 NORTH BARTLETT STREET, MEDFORD OR 97501
Louis Miramontes	director	150 N. BARTLETT ST., MEDFORD OR 97501
Scott Hillier	officer: Sr. VP of Operations	150 N. BARTLETT STREET, MEDFORD OR 97501
Kenneth E Roberts	director	150 N. BARTLETT ST., MEDFORD OR 97501
Marguerite Celeste	officer: Senior Vice President	150 N BARTLETT STREET, MEDFORD OR 97501
Susan O Cain	director	150 NORTH BARTLETT STREET, MEDFORD OR 97501