Sonic Automotive Inc (SAH)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.03 | 8.84 | 11.25 | 9.40 | 7.80 | |
| DOH | days | 51.92 | 41.30 | 32.45 | 38.81 | 46.77 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.03
= 51.92
To analyze Sonic Automotive Inc's days of inventory on hand (DOH), we observe a decreasing trend from 46.77 days as of December 31, 2020, to 38.81 days on December 31, 2021, further decreasing to 32.45 days on December 31, 2022. However, there was an increase in DOH to 41.30 days as of December 31, 2023, followed by a notable rise to 51.92 days as of December 31, 2024.
The decreasing trend in DOH from 2020 to 2022 indicates that Sonic Automotive was managing its inventory efficiently during this period, turning over inventory more quickly. However, the subsequent increase in DOH in 2023 and 2024 suggests a slowdown in inventory turnover, potentially leading to excess inventory or difficulties in sales, which may impact liquidity and profitability. Further analysis of factors affecting inventory management and sales performance is warranted to understand the reasons behind this fluctuation in DOH.
Peer comparison
Dec 31, 2024