Sonic Automotive Inc (SAH)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	2,520,400	2,206,300	2,084,100	1,882,600	2,017,610
Total current liabilities	US$ in thousands	2,292,900	1,845,400	1,891,700	1,831,400	2,066,160
Current ratio		1.10	1.20	1.10	1.03	0.98

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,520,400K ÷ $2,292,900K
= 1.10

The current ratio of Sonic Automotive, Inc. has fluctuated over the past five years. In 2023, the current ratio stands at 1.10, which indicates that the company has $1.10 in current assets for every $1 in current liabilities.

Compared to the previous year, there has been a slight decrease in the current ratio from 1.20 in 2022 to 1.10 in 2023. This may suggest that the company's ability to cover its short-term obligations with its current assets has weakened slightly over the year.

When looking at the trend over the past five years, Sonic Automotive, Inc. has generally maintained a current ratio above 1, which indicates a good liquidity position. However, there were fluctuations in the ratio, with the lowest point being 0.98 in 2019 and the highest point at 1.20 in 2022.

While a current ratio above 1 is typically considered healthy, investors and stakeholders should monitor Sonic Automotive's current assets and liabilities closely to ensure that the company can continue to meet its short-term financial obligations effectively.