Sonic Automotive Inc (SAH)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	13,948,800	13,687,700	11,861,000	9,733,100	8,933,340
Payables	US$ in thousands	149,800	138,400	133,300	105,100	135,217
Payables turnover		93.12	98.90	88.98	92.61	66.07

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $13,948,800K ÷ $149,800K
= 93.12

Sonic Automotive, Inc.'s payables turnover ratio has shown relatively consistent performance over the past five years, with values ranging between 66.07 and 84.42. The payables turnover ratio measures how efficiently a company pays its suppliers within a given period. A higher ratio generally indicates that the company is paying its suppliers more quickly.

In the most recent period ending on December 31, 2023, Sonic Automotive, Inc. had a payables turnover ratio of 80.95, a slight decrease from the previous year. This suggests that the company took approximately 80.95 days to settle its outstanding payables with suppliers.

Overall, Sonic Automotive's payables turnover ratio indicates that the company is managing its accounts payable effectively, maintaining a balance between timely payments to suppliers and optimizing cash flow. However, a further trend analysis and comparison with industry averages would provide more insights into the company's payables management efficiency.