Sonic Automotive Inc (SAH)

Number of days of payables

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Payables turnover 80.04 90.80 61.93 96.19 93.12 99.31 106.74 92.67 98.90 93.32 93.82 100.35 88.98 109.58 75.23 72.64 92.61 101.43 87.52 120.33
Number of days of payables days 4.56 4.02 5.89 3.79 3.92 3.68 3.42 3.94 3.69 3.91 3.89 3.64 4.10 3.33 4.85 5.02 3.94 3.60 4.17 3.03

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 80.04
= 4.56

The number of days of payables for Sonic Automotive Inc has fluctuated over the periods provided. In the most recent quarter, the number of days of payables stood at 4.56 days as of December 31, 2024. This indicates that the company takes an average of 4.56 days to pay off its suppliers and vendors.

It is important to note that a lower number of days of payables could imply that the company is paying its suppliers more quickly, possibly to maintain good relationships or to take advantage of discounts for early payments. On the other hand, a higher number of days of payables could suggest that the company is using its supplier financing to manage cash flow or is facing difficulties in meeting its payment obligations promptly.

Analyzing trends in the number of days of payables can provide insights into the company's liquidity management and supplier relationships. Fluctuations in this ratio over time may signal changes in the company's payment practices or operational efficiency. It would be beneficial to monitor this ratio in conjunction with other financial metrics to gain a comprehensive understanding of Sonic Automotive Inc's financial performance and cash management strategies.