Lithia Motors Balance Sheet Health
Financial Health criteria checks 3/6
Lithia Motors has a total shareholder equity of $6.4B and total debt of $12.6B, which brings its debt-to-equity ratio to 195.5%. Its total assets and total liabilities are $22.2B and $15.8B respectively. Lithia Motors's EBIT is $1.7B making its interest coverage ratio 4.2. It has cash and short-term investments of $404.6M.
Key information
195.5%
Debt to equity ratio
US$12.55b
Debt
Interest coverage ratio | 4.2x |
Cash | US$404.60m |
Equity | US$6.42b |
Total liabilities | US$15.76b |
Total assets | US$22.18b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: LMO's short term assets ($7.7B) exceed its short term liabilities ($6.6B).
Long Term Liabilities: LMO's short term assets ($7.7B) do not cover its long term liabilities ($9.2B).
Debt to Equity History and Analysis
Debt Level: LMO's net debt to equity ratio (189.2%) is considered high.
Reducing Debt: LMO's debt to equity ratio has reduced from 273.1% to 195.5% over the past 5 years.
Debt Coverage: LMO's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: LMO's interest payments on its debt are well covered by EBIT (4.2x coverage).