1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
Lithia Motors's 1-Year ROIIC % for the quarter that ended in Mar. 2024 was 0.02%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Lithia Motors's 1-Year ROIIC % or its related term are showing as below:
LAD's 1-Year ROIIC % is ranked worse than 57.95% of 1132
companies
in the Vehicles & Parts industry
Industry Median: 6.255
vs LAD: 0.02
Lithia Motors 1-Year ROIIC % Historical Data
The historical data trend for Lithia Motors's 1-Year ROIIC % 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.
Competitive Comparison of Lithia Motors's 1-Year ROIIC %
For the Auto & Truck Dealerships subindustry, Lithia Motors's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % 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 1-Year ROIIC % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Lithia Motors's 1-Year ROIIC % falls into.
Lithia Motors 1-Year ROIIC % Calculation
Lithia Motors's 1-Year ROIIC % for the quarter that ended in Mar. 2024 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( 1295.1082 (Mar. 2024) - 1293.4338 (Mar. 2023) )
/
( 21775.4 (Mar. 2024) - 14920.3 (Mar. 2023) )
=
1.6743999999999
/
6855.1
=
0.02%***
* 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.
** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Lithia Motors 1-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Lithia Motors's 1-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lithia Motors (Lithia Motors) Business Description
Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 45 brands of vehicles at about 350 stores globally including 28 U.S. states at year-end 2022 and entered Canada in mid-2021 with the purchase of Pfaff Automotive and bought Jardine and soon Pendragon in the U.K. in 2023. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the U.S. and we expect more deals over time in the U.S. and abroad. Annual revenue in 2022 was $28.2 billion and we see over $50 billion possible in 2025. In 2022, new-car sales were about 46% of total revenue. Lithia was founded in 1946, went public in 1996, and is now the largest U.S. auto dealer. It is based in Medford, Oregon.
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