The business behind the dividend
| Measure | LAD | Median | Formula |
|---|---|---|---|
| Return on equity | 12.4% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 9.8% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $792.30m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $5.80m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 4.2% | 14.3% | Operating income ÷ revenue |
| Net margin | 2.2% | 10.1% | Net income ÷ revenue |
| Debt to equity | 1.47x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 5.79x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 1.17x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 8.33x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 0.44x | 1.66x | Operating cash flow ÷ net income |
| Accruals | 1.8% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 12.4% | 12.0% | 16.1% | 24.0% | 22.9% | 17.7% | 18.5% | 22.2% | 22.6% | 21.6% | 18.5% |
| Return on capital employed | 9.8% | 10.6% | 12.7% | 18.1% | 23.7% | 14.5% | 17.7% | 21.0% | 21.9% | 24.2% | 17.7% |
| Operating margin | 4.2% | 4.3% | 5.5% | 6.9% | 7.3% | 5.3% | 3.9% | 3.8% | 4.1% | 3.9% | 4.2% |
| Net margin | 2.2% | 2.2% | 3.2% | 4.4% | 4.6% | 3.6% | 2.1% | 2.2% | 2.4% | 2.3% | 2.3% |
| Debt to equity | 1.47x | 1.23x | 1.15x | 1.06x | 0.52x | 0.79x | 0.91x | 0.77x | 0.72x | 0.53x | 0.79x |
| Current ratio | 1.17x | 1.19x | 1.41x | 1.46x | 1.38x | 1.35x | 1.20x | 1.20x | 1.21x | 1.19x | 1.20x |
| Cash conversion | 0.44x | 0.53x | -0.47x | -0.49x | 1.70x | 1.16x | 1.93x | 1.96x | 0.61x | 0.46x | 0.53x |
How it compares in consumer discretionary
Among the 6 consumer discretionary companies here measured on operating cash flow, Lithia Motors pays out less than 2 of them. The median for that group is 14.4%, against this company’s 15.5%.
Closest on operating cash flow
- AerCap Holdings N.V. (AER) 3.6%
- Aircastle (AYR) 13.0%
- TKO Group Holdings (TKO) 14.4%
- Triton International (TRTN-PA) 25.7%
Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →