Lithia Motors (STU:LMO) Inventory Turnover : 1.36 (As of Mar. 2024)

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What is Lithia Motors Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Lithia Motors's Cost of Goods Sold for the three months ended in Mar. 2024 was €6,648 Mil. Lithia Motors's Average Total Inventories for the quarter that ended in Mar. 2024 was €4,876 Mil. Lithia Motors's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.36.

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 three months ended in Mar. 2024 was 66.92.

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 quarter that ended in Mar. 2024 was 0.62.

Lithia Motors Inventory Turnover Historical Data

The historical data trend for Lithia Motors's Inventory Turnover 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 Inventory Turnover Chart

Lithia Motors Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.52

4.23

7.90

8.16

6.25

Lithia Motors Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															1.58	1.64	1.60	1.39	1.36

Lithia Motors Inventory Turnover Calculation

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

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	23670.888	/ (	(3218.474	+	4359.326)	/	2 )
=	23670.888	/	3788.9
=	6.25

Lithia Motors's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	6648.472	/ (	(4359.326	+	5392.948)	/	2 )
=	6648.472	/	4876.137
=	1.36

Lithia Motors (STU:LMO) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. 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 three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	4876.137	/	6648.472	*	365 / 4
	=	66.92

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 quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	4876.137	/	7876.856
	=	0.62

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Lithia Motors Inventory Turnover Related Terms

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Lithia Motors (STU:LMO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Lithia Motors Inc (STU:LMO) » Definitions » Inventory Turnover

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LAD:USA

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.

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