Lithia Motors Inc. (LAD) Financial Analysis and Rating

Comparison Analysis Based on SEC Data

Company Name Lithia Motors Inc.
Industry (SIC) 55 - Automotive Dealers And Gasoline Service Stations
Revenue in 2025 $37,635 million (ranked #1 out of 25 companies in the industry)
Assets as of 12/31/2025 $25,107 million (ranked #2)
Market Cap $6,612 million (Nov 11, 2026)
Analyzed report 3/31/2025 (filed 4/24/2025)

Year:

Financial Position and Performance

Compared with Q1 2025 industry ratios Change during the quarter

better

deteriorated
Compared with all listed companies

about the same

Compare with a competitor

Financial Ratios Benchmarking

Financial Ratio Comparison of company ratios for 3/31/2025
with Q1 2025 industry ratios
(55 - Automotive Dealers And Gasoline Service Stations)
with all listed companies
Solvency Ratios
Debt ratio 
0.71
0.77
0.71
0.61
Debt-to-equity ratio 
2.46
2.46
2.46
1.35
Interest coverage ratio 
5.34
3.44
5.34
1.56
Liquidity Ratios
Current Ratio 
1.18
1.14
1.18
1.72
Quick Ratio 
0.25
0.22
0.25
1.01
Cash Ratio 
0.04
0.06
0.04
0.52
Profitability Ratios
Profit margin 
2.3%
1.9%
2.3%
2.1%
ROE (Return on equity), after tax 
12.6%
11.2%
12.6%
4.1%
ROA (Return on assets) 
3.6%
3.6%
3.6%
0.7%
Activity Ratios
Asset turnover (days) 
229
229
229
751
Receivables turnover (days) 
13
13
13
48
Resulting score +0,5 0,0

Year:

Additional Ratios (not used in score calculation)

Financial Ratio Comparison of company ratios for 3/31/2025
with Q1 2025 industry ratios
(55 - Automotive Dealers And Gasoline Service Stations)
with all listed companies
Profitability Ratios
Gross margin 
15.4%
20.5%
15.4%
42.1%
Operating margin (Return on sales) 
3.8%
2.9%
3.8%
4.7%
Activity Ratios
Inventory turnover (days) 
68
68
68
87
EBIT  $350M
EBITDA  $428M
Price Ratios
Earnings per Share (basic)  $7.96
Earnings per Share (diluted)  $7.94

Auditor's Conclusion

We have performed a comparative analysis of the balance sheet and income statement of Lithia Motors Inc. (hereafter – the "Company") for Q1 2025 as filed with the U.S. Securities and Exchange Commission (SEC). The primary business activity of the Company is "Automotive Dealers And Gasoline Service Stations" (SIC code 55). In our analysis, we compared the key financial ratios of the Company with the average (median) values of those ratios calculated for the Company's specific industry sector and for all companies. The averages were calculated using data from Q1 2025 financial statements filed with the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). By comparing each of the eleven key metrics to the median, we have reached an overall conclusion about the quality of the Company's financial condition. All calculations and conclusions were performed using software and methodologies developed by ReadyRatios.

Based on our analysis of the Company's key financial ratios, we have determined the following. The financial condition of Lithia Motors Inc. in 2025 is better than the typical financial condition of companies in the "Automotive Dealers And Gasoline Service Stations" industry.

The average ratios for this industry are below the average for all companies. For this reason, the Company shows a weaker result compared to all businesses. The financial position of Lithia Motors Inc. is about the same as the average financial condition of listed companies that file financial statements with the U.S. Securities and Exchange Commission.

Financial Position and Performance History


More on Lithia Motors Inc.

Closest Competitors

Company USD ($), in Millions
Revenue Assets
Penske Automotive Group Inc. 31,809 17,598
AutoNation Inc. 27,631 14,392
CarMax Inc 25,379 25,562
Group 1 Automotive Inc. 22,571 10,350

See all industry leaders

Financial Data Source and Analysis Principles

The above is a comparative analysis of the company's financial position and performance. The comparison is based on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) (about 10,000 largest publicly traded companies). The comparison is made using the eleven key financial ratios (see the table above). The company's financial ratios are compared with the median of the ratios for all companies and for companies in the same industry, as well as to the quartiles of these ratios. Each ratio value is assigned a score between -2 and +2 depending on its position relative to the quartiles (-2 – below the first quartile; -1 – between the first and the second quartile; +1 – between the second and the third quartile; +2 – above the third quartile; 0 – the ratio value deviates from the median by no more than 5% of the difference between the median and the quartile closest to the ratio value). To draw a conclusion from the analysis, the individual scores are weighted equally to produce an overall score ranging from -2 and +2.

much better (+1 - +2incl)
better (from 0.11 to +1incl)
about the same (from -0.11incl to +0.11incl)
worse (from -1incl to -0.11)
much worse (from -2incl to -1)
"Change during the year" calculation

Change during the year is calculated by comparing the resulting score of financial position within the industry with the last year's (quarter's) score. The result of the comparison may be as follows:

significantly improved (positive change of more than 1 point)
improved (positive change of less than 1 point)
unchanged (little or no change in score, no more than 0.11 points)
deteriorated (the score has decreased by less than 1 point during the year)
deteriorated significantly (the score has decreased by more than 1 point during the year)


Please note that this analysis does not indicate that the company's financial position is good or bad, but rather describes it in comparison to other U.S. businesses. For a detailed financial analysis, please use "ReadyRatios Financial Analysis" - load the data into the program>>

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