Sonic Automotive Inc (SAH)

Receivables 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
Revenue (ttm)	US$ in thousands	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	10,454,340	10,280,200	10,048,330	9,940,000
Receivables	US$ in thousands	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	432,742	365,005	364,026	371,768
Receivables turnover		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	24.16	28.16	27.60	26.74

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $14,233,200K ÷ $528,100K
= 26.95

Sonic Automotive, Inc.'s receivables turnover has shown fluctuations over the past eight quarters. The receivables turnover ratio measures how efficiently a company is able to collect its outstanding accounts receivable during a specific period.

Based on the data provided, Sonic Automotive's receivables turnover has ranged from a low of 27.22 in Q4 2023 to a high of 39.02 in Q2 2022. A higher turnover ratio suggests that the company is efficiently collecting its receivables, while a lower ratio may indicate potential issues with collections or credit policies.

The trend over the past quarters shows some variability, with the ratio generally fluctuating between 27.22 and 39.02. This variability could be due to factors such as changes in sales volume, customer payment behavior, or credit terms provided by the company.

Overall, it is important for Sonic Automotive to monitor its receivables turnover ratio consistently to ensure efficient management of its accounts receivable and timely collections, which are crucial for maintaining healthy cash flow and financial stability.