Sonic Automotive Inc (SAH)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	13,949,700	14,201,700	13,993,900	13,770,700	13,687,700	12,980,230	12,628,430	12,463,850	11,861,000	11,525,890	11,030,600	9,902,120	9,733,100	9,394,900	9,258,700	9,433,130	8,933,330	8,782,350	8,576,750	8,487,350
Payables	US$ in thousands	149,800	143,000	131,100	148,600	138,400	139,100	134,600	124,200	133,300	105,181	146,634	136,314	105,100	92,624	105,784	78,394	135,217	119,790	128,579	127,443
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

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,949,700K ÷ $149,800K
= 93.12

The payables turnover ratio measures how efficiently Sonic Automotive, Inc. is managing its payables by evaluating how many times its accounts payable is paid off over a certain period. A higher ratio indicates that the company is paying its suppliers more frequently.

From the data provided, Sonic Automotive's payables turnover ratio has been relatively stable over the past eight quarters, ranging from 79.97 to 90.80. This implies that the company is consistently managing its accounts payable effectively.

Overall, Sonic Automotive's payables turnover ratio shows that the company is able to efficiently manage its payables, indicating good liquidity and strong supplier relationships. The consistent ratio over time suggests a stable approach to managing payments to suppliers.