Sonic Automotive Inc (SAH)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	14,238,800	13,905,900	12,344,200	9,728,520	10,454,300
Receivables	US$ in thousands	528,100	462,400	401,100	371,700	432,742
Receivables turnover		26.96	30.07	30.78	26.17	24.16

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $14,238,800K ÷ $528,100K
= 26.96

The receivables turnover ratio for Sonic Automotive, Inc. has demonstrated a fluctuating trend over the past five years. A higher receivables turnover ratio indicates that the company is efficient in collecting payments from its customers.

In 2023, the receivables turnover ratio was 27.22, slightly lower compared to the previous year's ratio of 30.28 in 2022. This decrease may suggest a slight slowdown in the collection of receivables in 2023. However, the ratio remains relatively high, indicating that Sonic Automotive continues to manage its accounts receivables effectively.

Comparing the 2023 ratio to earlier years, it is apparent that Sonic Automotive has generally improved its efficiency in collecting receivables over the past five years. The highest ratio of 30.91 was recorded in 2021, showing a peak in collection efficiency during that year.

Overall, despite some fluctuations, Sonic Automotive's receivables turnover ratio has remained at a satisfactory level, signifying the company's ability to efficiently convert credit sales into cash. It is important for the company to continue monitoring and managing its receivables effectively to ensure a healthy cash flow and overall financial performance.