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Lithia MotorsFRA:LMO -5.41%91 Current Ratio is 1.00 as of Jun. 2026, which is 17% below its 10-year median of 1.20. GuruFocus rates FRA:LMO with a GF Score™ of 91/100 and a GF Value™ of €345.69 (Fairly Valued). The stock has 13 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Lithia Motors ranks worse than 83.32% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Lithia Motors's current ratio for the quarter that ended in Jun. 2026 was 1.00.
Lithia Motors has a current ratio of 1.00. It generally indicates good short-term financial strength.
The historical rank and industry rank for Lithia Motors's Current Ratio or its related term are showing as below:
FRA:LMO'
s Current Ratio Range Over the Past 10 Years
Min: 0.99 Med: 1.2 Max: 1.66
Current: 1
During the past 13 years, Lithia Motors's highest Current Ratio was 1.66. The lowest was 0.99. And the median was 1.20.
FRA:LMO's Current Ratio is ranked worse than 83.32% of 1331
companies
in the Vehicles & Parts industry
Industry Median: 1.53
vs FRA:LMO: 1.00
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Lithia Motors Current Ratio Related Terms
Lithia Motors Current Ratio Historical Data
* Premium members only.
The historical data trend for Lithia Motors's Current Ratio 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.
FRA:LMO vs ALTB, KMX, AN: Current Ratio Comparison
For the Auto & Truck Dealerships subindustry, Lithia Motors's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Current Ratio distribution charts can be found below:
* The bar in red indicates where Lithia Motors's Current Ratio falls into.
* 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.
Lithia Motors (FRA:LMO) has a Current Ratio of 1.00 as of Jun. 2026. This is 17% below median its historical median of 1.20. Over the past decade, Lithia Motors' Current Ratio has ranged from 0.99 to 1.66. According to the industry distribution chart, Lithia Motors ranks #1109 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 83.3%.
Is Lithia Motors' Current Ratio too high?
Lithia Motors' current Current Ratio of 1.00 is 17% below median its 10-year median of 1.20. Over the past 10 years, this metric has ranged from a low of 0.99 to a high of 1.66. The Vehicles & Parts industry median Current Ratio is 1.53. Lithia Motors' value of 1.00 is 34.6% below this industry median. Based on the distribution chart, Lithia Motors ranks #1109 out of 1331 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Lithia Motors has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lithia Motors' Current Ratio compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #1109 out of 1331 companies for Current Ratio. This places Lithia Motors in the lower half of its industry. The industry median Current Ratio is 1.53. Lithia Motors' value of 1.00 is 34.6% below this benchmark. Historically, Lithia Motors' own Current Ratio has ranged from 0.99 to 1.66 over the past decade. While the company's 10-year median is 1.20 vs. the industry median of 1.53, Lithia Motors has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.53, based on 1,331 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current Current Ratio of 1.00 is 34.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median Current Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current Current Ratio is 1.00, which is 17% below median its own 10-year median of 1.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lithia Motors stock overvalued right now?
Based on GuruFocus' analysis, Lithia Motors (FRA:LMO) is currently considered Fairly Valued. The stock's GF Value™ is €345.69, compared to a current price of €350.00 — trading 1.2% above its estimated fair value. The current Current Ratio is 1.00, which is 17% below median its 10-year median of 1.20 and 34.6% below the Vehicles & Parts industry median of 1.53. Lithia Motors' overall GF Score™ is 91/100 with 13 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Lithia Motors (FRA:LMO), the current Current Ratio is 1.00 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lithia Motors (FRA:LMO) Overvalued in 2026?
Based on GuruFocus' analysis, Lithia Motors stock appears to be overvalued.
The current stock price of €350.00 is trading 1.2% above its estimated GF Value™ of €345.69.
GuruFocus considers Lithia Motors to be Fairly Valued.
Key valuation signals for FRA:LMO:
Current Ratio: 1.00 (17% below median its 10-year median of 1.20)
GF Value™: €345.69 vs. price of €350.00 (1.2% above fair value)
Industry Position: 34.6% below the Vehicles & Parts median (#1109 of 1331)
No single metric tells the full story. See the FRA:LMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lithia Motors is a retailer of new and used vehicles and related services. The company offers nearly 60 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect more deals over time in the US and, at times, abroad. Annual revenue in 2025 was $37.6 billion and we see over $50 billion possible in a few years. The US was 78.5% of 2025 revenue and the UK second at 18.4%, due to the 2024 Pendragon acquisition. In 2025, new vehicle sales were about 50% of total revenue. Lithia was founded in 1946, went public in 1996, and is the largest US auto dealer. It is based in Medford, Oregon.
91GF Score
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