LAD (Lithia Motors) Debt-to-Equity : 2.13 (As of Sep. 2024)

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What is Lithia Motors Debt-to-Equity?

Lithia Motors's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $5,243 Mil. Lithia Motors's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $8,809 Mil. Lithia Motors's Total Stockholders Equity for the quarter that ended in Sep. 2024 was $6,605 Mil. Lithia Motors's debt to equity for the quarter that ended in Sep. 2024 was 2.13.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Lithia Motors's Debt-to-Equity or its related term are showing as below:

LAD' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.91 Med: 2.38 Max: 2.95
Current: 2.13

During the past 13 years, the highest Debt-to-Equity Ratio of Lithia Motors was 2.95. The lowest was 0.91. And the median was 2.38.

LAD's Debt-to-Equity is ranked worse than
92.85% of 1188 companies
in the Vehicles & Parts industry
Industry Median: 0.475 vs LAD: 2.13

Lithia Motors Debt-to-Equity Historical Data

The historical data trend for Lithia Motors's Debt-to-Equity 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.

* Premium members only.

Lithia Motors Debt-to-Equity Chart

Lithia Motors Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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2.57

1.57

1.07

1.54

1.82

Lithia Motors Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Debt-to-Equity	Get a 7-Day Free Trial															1.70	1.82	2.08	2.22	2.13

Competitive Comparison of Lithia Motors's Debt-to-Equity

For the Auto & Truck Dealerships subindustry, Lithia Motors's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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's Debt-to-Equity Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Lithia Motors's Debt-to-Equity falls into.

Lithia Motors Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Lithia Motors's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(3745.1	+	7583.3)	/	6213.9
	=	1.82

Lithia Motors's Debt to Equity Ratio for the quarter that ended in Sep. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(5243.1	+	8808.6)	/	6604.7
	=	2.13

Lithia Motors (NYSE:LAD) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Lithia Motors Debt-to-Equity Related Terms

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

Lithia Motors Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Lithia Motors Inc (NYSE:LAD) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

LMO:Germany 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 50 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 2023 was $31 billion and we see over $50 billion possible in a few years. The US was 90% of 2023 revenue and the UK second at 6%, the latter should rise to around 20% with the 2024 Pendragon acquisition. In 2023, new-car sales were about 49% 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.

Executives

Tina Miller	officer: VP, CAO & Principal Fin. Off.	150 N. BARTLETT ST., MEDFORD OR 97501
Bryan B Deboer	director, officer: Chief Executive officer	150 N. BARTLETT STREET, MEDFORD OR 97501
Gary M Glandon	officer: Chief People Officer	C/O LITHIA MOTORS, INC., 150 NORTH BARTLETT STREET, MEDFORD OR 97501
Louis Miramontes	director	150 N. BARTLETT ST., MEDFORD OR 97501
Shauna Mcintyre	director	150 N. BARTLETT STREET, MEDFORD OR 97501
Chris Holzshu	officer: Sr. Vice President & CFO	150 N. BARTLETT STREET, MEDFORD OR 97501
Sidney B Deboer	director, officer: Executive Chairman	234 VISTA ST., ASHLAND OR 97520
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
James E. Lentz	director	C/O LITHIA MOTORS INC., 150 NORTH BARTLETT STREET, 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