Sonic Automotive Inc (SAH)

Total asset 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
Total assets	US$ in thousands	5,364,600	4,978,300	4,975,100	3,746,000	4,071,040
Total asset turnover		2.65	2.79	2.48	2.60	2.57

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $14,238,800K ÷ $5,364,600K
= 2.65

Sonic Automotive, Inc.'s total asset turnover has displayed some fluctuations over the past five years. The company's ability to generate sales relative to its asset base was at its highest in 2022 with a ratio of 2.81, indicating that for every dollar of assets, the company generated $2.81 in sales. This suggests efficient asset utilization and productivity.

In 2023, there was a slight decrease in the total asset turnover to 2.68, indicating a small decline in the company's efficiency in generating sales from its assets compared to the previous year. However, the ratio still remains relatively high, signaling effective management of assets to generate revenue.

In 2021, the total asset turnover was at its lowest at 2.49, suggesting that the company's asset utilization in generating sales was not as efficient as in the other years analyzed. Despite this dip, the ratio improved in 2022 and 2023, demonstrating the company's efforts to enhance asset productivity over time.

Overall, Sonic Automotive, Inc. has generally maintained a favorable total asset turnover ratio over the past five years, reflecting the company's efficient use of its assets to drive revenue generation. The fluctuations observed in the ratio indicate varying levels of asset utilization efficiency, with the company showing resilience and adaptability in optimizing its asset turnover in different periods.