Sonic Automotive Inc (SAH)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,762,800 | 13,948,800 | 13,687,700 | 11,861,000 | 9,733,100 |
| Inventory | US$ in thousands | 1,957,700 | 1,578,300 | 1,216,800 | 1,261,200 | 1,247,300 |
| Inventory turnover | 7.03 | 8.84 | 11.25 | 9.40 | 7.80 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $13,762,800K ÷ $1,957,700K
= 7.03
Sonic Automotive Inc's inventory turnover has shown a varying trend over the past five years. In December 2020, the inventory turnover ratio was 7.80, indicating that the company turned over its inventory approximately 7.80 times during the year. This ratio improved to 9.40 in December 2021, reflecting a more efficient management of inventory.
The trend continued positively in December 2022, with the inventory turnover ratio reaching 11.25, signifying a significant enhancement in inventory management efficiency. However, in December 2023, the ratio slightly decreased to 8.84, indicating a relatively lower rate of inventory turnover than the previous year.
By December 2024, the inventory turnover ratio declined further to 7.03, suggesting a decrease in the frequency with which Sonic Automotive Inc was able to sell and replace its inventory within the year. Overall, while there have been fluctuations in the inventory turnover ratio, it is important for the company to focus on maintaining efficient inventory management practices to optimize profitability and liquidity.
Peer comparison
Dec 31, 2024