Sonic Automotive Inc (SAH)
Working capital 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 |
Total current assets | US$ in thousands | 2,885,500 | 2,811,400 | 2,916,200 | 2,511,000 | 2,520,400 | 2,241,500 | 2,297,300 | 2,301,800 | 2,206,300 | 1,757,000 | 2,070,900 | 2,060,600 | 2,084,100 | 1,471,960 | 1,719,370 | 1,780,680 | 1,882,600 | 1,652,130 | 1,739,100 | 2,129,790 |
Total current liabilities | US$ in thousands | 2,637,700 | 2,538,500 | 2,651,000 | 2,299,700 | 2,292,900 | 2,009,200 | 2,004,400 | 2,057,000 | 1,845,400 | 1,718,500 | 1,883,100 | 1,869,200 | 1,891,700 | 1,428,400 | 1,635,800 | 1,781,330 | 1,831,400 | 1,629,020 | 1,748,180 | 2,013,040 |
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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,235,900K ÷ ($2,885,500K – $2,637,700K)
= 57.45
Sonic Automotive Inc's working capital turnover has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The working capital turnover ratio measures how efficiently the company converts its working capital into revenue.
The working capital turnover ratio for Sonic Automotive Inc ranged from a high of 419.30 on September 30, 2020, to a low of 38.54 on December 31, 2022. This indicates a significant variation in how effectively the company was utilizing its working capital to generate sales during this period.
The ratio saw periods of strong performance, such as on September 30, 2020, and September 30, 2022, where the working capital turnover exceeded 274, indicating efficient utilization of working capital. However, there were also weaker periods, as seen on December 31, 2022, when the ratio dropped significantly to 38.54, suggesting a lower level of efficiency in converting working capital into revenue.
Overall, Sonic Automotive Inc's working capital turnover ratio fluctuated throughout the period, showing both strengths and weaknesses in managing its working capital to drive sales. It is essential for the company to analyze the factors influencing these fluctuations to maintain a consistent and efficient use of working capital in the future.
Peer comparison
Dec 31, 2024