Sonic Automotive Inc (SAH)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,233,300 | 14,238,800 | 13,905,900 | 12,344,200 | 9,728,520 |
| Property, plant and equipment | US$ in thousands | 1,606,900 | 1,601,000 | 1,561,700 | 1,458,800 | 1,120,500 |
| Fixed asset turnover | 8.86 | 8.89 | 8.90 | 8.46 | 8.68 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,233,300K ÷ $1,606,900K
= 8.86
Sonic Automotive Inc's fixed asset turnover ratio has been relatively stable over the past five years, ranging from 8.46 to 8.90. This ratio indicates the company's efficiency in generating sales revenue from its investment in fixed assets.
A higher fixed asset turnover ratio generally signifies better asset utilization and productivity. Sonic Automotive Inc's consistently high fixed asset turnover suggests that the company is effectively using its fixed assets to generate sales revenue. This could be attributed to effective management of its fixed assets or a lean operational structure.
Overall, the trend of Sonic Automotive Inc's fixed asset turnover ratio over the past five years indicates a strong operational efficiency in utilizing its fixed assets to drive sales revenue.
Peer comparison
Dec 31, 2024