Sonic Automotive Inc (SAH)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	14,238,800	13,905,900	12,344,200	9,728,520	10,454,300
Property, plant and equipment	US$ in thousands	1,601,000	1,561,700	1,458,800	1,120,500	1,097,250
Fixed asset turnover		8.89	8.90	8.46	8.68	9.53

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,238,800K ÷ $1,601,000K
= 8.89

Sonic Automotive, Inc.'s fixed asset turnover has remained relatively stable over the past five years, ranging from 8.50 to 9.53. This indicates that the company is generating revenue efficiently from its investment in fixed assets.

The slight fluctuations in the fixed asset turnover ratio suggest that the company's management of fixed assets has been consistent and effective. A higher fixed asset turnover ratio signifies that Sonic Automotive is utilizing its fixed assets to generate sales revenue at a faster rate.

Overall, the trend in Sonic Automotive's fixed asset turnover ratio suggests that the company has been successful in optimizing the use of its fixed assets to generate revenue over the years.