Sonic Automotive Inc (SAH)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 7.03 7.03 6.97 8.14 8.84 9.90 9.66 9.42 11.25 10.84 10.18 10.40 9.40 13.55 10.85 8.04 7.80 8.26 7.87 5.87
Receivables turnover 28.71 31.53 31.56 33.58 26.95 33.07 35.13 37.18 30.08 37.46 38.01 37.00 30.78 43.05 32.07 27.33 26.18 33.77 30.53 51.59
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
Working capital turnover 57.45 50.45 52.51 66.85 62.56 61.42 48.05 56.93 38.54 350.89 70.01 67.94 64.17 274.77 136.96 — 190.04 419.30 — 88.77

Based on the provided data, we can analyze the activity ratios of Sonic Automotive Inc as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Sonic Automotive Inc's inventory turnover has shown fluctuations over the years, ranging from 5.87 to 13.55. An increasing trend in the inventory turnover ratio indicates that the company is selling its inventory at a faster rate, which is generally positive for the company's financial health.

2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly a company is collecting its receivables from customers. Sonic Automotive Inc's receivables turnover ratio has varied between 26.18 and 43.05. A higher turnover ratio suggests that the company is effectively managing its receivables and collecting payments in a timely manner.

3. Payables Turnover:
- The payables turnover ratio measures how efficiently a company pays its suppliers. Sonic Automotive Inc's payables turnover ratio has fluctuated between 61.93 and 120.33. A higher turnover ratio indicates that the company is managing its payables effectively, possibly by negotiating better payment terms with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio shows how efficiently a company utilizes its working capital to generate sales. Sonic Automotive Inc's working capital turnover has varied over the years, with some periods showing negative or unavailable data. A higher turnover ratio signifies that the company is efficiently using its working capital to generate revenue.

In conclusion, analyzing these activity ratios can provide insights into Sonic Automotive Inc's operational efficiency, financial health, and effectiveness in managing its assets and liabilities. It is essential for stakeholders and investors to monitor these ratios to evaluate the company's performance and potential for growth.

Average number of days

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
Days of inventory on hand (DOH) days 51.90 51.94 52.35 44.84 41.30 36.85 37.79 38.77 32.45 33.66 35.85 35.09 38.81 26.93 33.64 45.42 46.77 44.21 46.38 62.23
Days of sales outstanding (DSO) days 12.71 11.58 11.56 10.87 13.54 11.04 10.39 9.82 12.13 9.74 9.60 9.87 11.86 8.48 11.38 13.36 13.94 10.81 11.95 7.07
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

Sonic Automotive Inc's Days of Inventory on Hand (DOH) has fluctuated over the years, indicating changes in the company's inventory management. Starting at 62.23 days on March 31, 2020, the DOH decreased to 26.93 days on September 30, 2021, before slightly rising to 51.90 days on December 31, 2024. The company appears to have improved its inventory turnover efficiency by reducing the DOH.

In terms of Days of Sales Outstanding (DSO), Sonic Automotive Inc has shown a relatively stable performance. The DSO ranged from 7.07 days on March 31, 2020, to 12.71 days on December 31, 2024. This suggests that the company's collection of accounts receivable has been consistent throughout the period under review.

The Number of Days of Payables, on the other hand, has varied for Sonic Automotive Inc. Starting at 3.03 days on March 31, 2020, the payables period increased to a peak of 5.89 days on June 30, 2024. This indicates that the company took longer to pay its suppliers in certain periods, which may have impacted its cash flow and relationships with vendors.

Overall, Sonic Automotive Inc's activity ratios reflect potential areas for improvement in inventory management and payables processing to enhance operational efficiency and cash flow management.

Long-term

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
Fixed asset turnover 8.86 8.59 8.74 8.84 8.89 8.92 9.03 8.75 8.91 8.68 8.81 8.74 8.46 9.71 9.72 8.75 8.68 8.72 8.85 9.49
Total asset turnover 2.41 2.39 2.40 2.61 2.65 2.83 2.77 2.71 2.79 2.80 2.62 2.60 2.48 3.41 3.13 2.76 2.60 2.77 2.74 2.61

Sonic Automotive Inc's fixed asset turnover ratio has remained relatively stable over the past few years, ranging between 8.46 and 9.72. This indicates that the company is effectively generating revenue in relation to its investment in fixed assets. The slight fluctuations in the ratio suggest that Sonic Automotive is efficiently utilizing its fixed assets to generate sales, although there may have been some variations in operational efficiency.

In contrast, the total asset turnover ratio has shown more fluctuation, ranging from 2.39 to 3.41. This ratio measures the company's ability to generate sales in relation to its total assets. The higher ratios seen in some quarters indicate that Sonic Automotive has effectively utilized its total assets to generate revenue. However, the fluctuations in the ratio also suggest variations in asset utilization efficiency over time.

Overall, while the fixed asset turnover ratio remains relatively stable, Sonic Automotive's total asset turnover ratio shows more variability, indicating potential changes in the company's operational efficiency and asset utilization strategies.