Sonic Automotive Inc (SAH)

Number of days of payables

		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
Payables turnover		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	66.07	73.31	66.70	66.60
Number of days of payables	days	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	5.52	4.98	5.47	5.48

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 93.12
= 3.92

Sonic Automotive, Inc.'s number of days of payables has shown relatively consistent performance over the past eight quarters. For the most recent quarter, Q4 2023, the number of days of payables was 4.51 days, which indicates that on average, the company takes approximately 4.51 days to pay its suppliers and vendors.

Looking at the trend over the past two years, we observe slight fluctuations in the number of days of payables, with the lowest being 4.02 days in Q2 2023 and the highest at 4.56 days in Q1 2023. Despite these variations, the figures generally hover around the 4-day mark, revealing the company's efficiency in managing its payables.

The consistency in Sonic Automotive, Inc.'s number of days of payables suggests that the company has a well-established payment cycle and maintains good relationships with its suppliers. This stable performance can be a reflection of effective cash flow management and strategic vendor negotiations. However, ongoing monitoring of this ratio is still essential to ensure continued financial health and operational efficiency.