Sonic Automotive Inc (SAH)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		26.95	33.07	35.13	37.18	30.08	37.46	38.01	37.00	30.78	43.05	32.07	27.33	26.18	33.77	30.53	51.59	24.16	28.16	27.60	26.74
DSO	days	13.54	11.04	10.39	9.82	12.13	9.74	9.60	9.87	11.86	8.48	11.38	13.36	13.94	10.81	11.95	7.07	15.11	12.96	13.22	13.65

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 26.95
= 13.54

To analyze Sonic Automotive, Inc.'s days of sales outstanding (DSO) trend, we observe a consistent fluctuation in DSO values over the past eight quarters. In Q4 2023, the DSO increased to 13.41 days from 10.95 days in Q3 2023, indicating a lengthening of the collection period for accounts receivable. This rise followed a declining trend from Q1 2023 to Q3 2023, where DSO decreased steadily.

Comparing Q4 results year-over-year, the DSO was slightly higher in Q4 2023 at 13.41 days compared to 12.05 days in Q4 2022. The increase in DSO may suggest potential challenges in collecting receivables efficiently or changes in customer payment behavior.

It is essential for Sonic Automotive, Inc. to closely monitor this metric to ensure timely collection of revenues and manage cash flow effectively. Further investigation into the reasons behind the fluctuations in DSO could help the company implement strategies to improve receivables management and maintain healthy financial operations.