Sonic Automotive Inc (SAH)
Payables 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 |
| Payables | US$ in thousands | 172,000 | 149,800 | 138,400 | 133,300 | 105,100 |
| Payables turnover | 80.02 | 93.12 | 98.90 | 88.98 | 92.61 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $13,762,800K ÷ $172,000K
= 80.02
To analyze Sonic Automotive Inc's payables turnover, we calculate the payables turnover ratio by dividing the cost of goods sold by the average accounts payable for the period. The payables turnover represents how many times a company pays off its accounts payable during a specific period.
Based on the provided data, Sonic Automotive Inc's payables turnover ratio has fluctuated over the years:
- December 31, 2020: 92.61
- December 31, 2021: 88.98
- December 31, 2022: 98.90
- December 31, 2023: 93.12
- December 31, 2024: 80.02
A higher payables turnover ratio typically indicates that the company is paying off its suppliers more quickly. Conversely, a lower ratio may suggest a slower payment cycle.
Sonic Automotive Inc's payables turnover has shown some variability, but overall, it appears to have maintained a relatively high turnover ratio over the years. This could imply efficient management of accounts payable and effective cash flow management. However, further analysis in conjunction with other financial metrics is recommended to get a more comprehensive view of the company's financial health.
Peer comparison
Dec 31, 2024