Sonic Automotive Inc (SAH)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	14,235,900	13,767,300	13,925,100	14,125,400	14,233,200	14,269,000	14,074,700	13,935,600	13,908,700	13,509,270	13,147,070	13,004,340	12,345,730	11,969,180	11,445,730	10,207,390	9,729,990	9,690,070	9,853,240	10,363,490
Receivables	US$ in thousands	495,900	436,600	441,200	420,600	528,100	431,500	400,600	374,800	462,400	360,600	345,900	351,500	401,100	278,008	356,850	373,518	371,700	286,938	322,703	200,876
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $14,235,900K ÷ $495,900K
= 28.71

The receivables turnover of Sonic Automotive Inc has shown fluctuations over the period under review. The ratio ranged from a low of 26.18 in December 31, 2020, to a high of 51.59 in March 31, 2020, indicating a significant variation in how quickly the company collects its receivables.

In general, a higher receivables turnover ratio is preferable as it suggests that the company is able to collect outstanding receivables more frequently, which is a positive indicator of efficiency in managing its accounts receivable. Conversely, a lower turnover ratio may indicate inefficiencies in collections or potential issues with credit risk.

The trend of Sonic Automotive Inc's receivables turnover ratio appears to have improved from the lows seen in late 2020, although there are still fluctuations in the subsequent periods. Further monitoring and analysis of the trend in receivables turnover would be beneficial to assess the company's performance in managing its receivables effectively.