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As used in this Annual Report, the terms Lithia, Lithia and Driveway, LAD, the Company, we, us, and our refer collectively to Lithia Motors, Inc. and its subsidiaries, unless otherwise required by the context. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation, the factors as discussed in Part I, Item 1A.
Operating margin is thin at 4.24%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 4.0%, steady but not accelerating. Free cash flow declined 92% despite revenue growth, conversion is weakening.
Free cash flow declined 92% versus the prior year, cash generation momentum has weakened. Net debt of $10.30B represents 1775.8x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$37.73B
▲ +4.0% YoY
Net Income (TTM)
$711M
▲ +2.9% YoY
Op. Margin
4.04%
ROIC
12.98%
▼ -0.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$453M
▼ -92.1% YoY
Op. Cash Flow (TTM)
-$74M
▼ -16.1% YoY
Net Debt
$491M
Cash & Equiv.
$161M
5Y CAGR: +23.4%
5Y CAGR: -56.6%
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