Sonic Automotive Inc (SAH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.41% | 15.77% | 16.66% | 15.51% | 14.63% |
| Operating profit margin | 3.24% | 2.97% | 2.26% | 4.36% | 0.35% |
| Pretax margin | 1.80% | 1.70% | 1.37% | 3.71% | -0.36% |
| Net profit margin | 1.52% | 1.25% | 0.64% | 2.83% | -0.53% |
Sonic Automotive Inc's gross profit margin has shown a general upward trend over the past five years, from 14.63% in December 31, 2020, to 15.41% in December 31, 2024. This indicates an improvement in the company's ability to generate profit from its core operations.
The operating profit margin also demonstrates a positive trajectory, increasing from 0.35% in December 31, 2020, to 3.24% in December 31, 2024. This signals that the company has become more efficient in controlling its operating expenses and improving profitability.
The pretax margin has fluctuated over the same period, starting at -0.36% in December 31, 2020, reaching a peak of 3.71% in December 31, 2021, and then stabilizing around the 1.70-1.80% range in the subsequent years. This suggests that Sonic Automotive Inc has been able to manage its pre-tax profitability effectively.
Lastly, the net profit margin has also seen a positive trend, increasing from -0.53% in December 31, 2020, to 1.52% in December 31, 2024. This indicates that the company has been successful in enhancing its bottom line profitability after accounting for all expenses and taxes.
In conclusion, Sonic Automotive Inc has shown improvements in its profitability ratios over the past five years, reflecting better control over costs, increased efficiency in operations, and a positive trend in generating profits.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.83% | 7.90% | 6.31% | 10.82% | 0.90% |
| Return on assets (ROA) | 3.66% | 3.32% | 1.78% | 7.01% | -1.37% |
| Return on total capital | 17.93% | 16.89% | 12.23% | 20.81% | 2.31% |
| Return on equity (ROE) | 20.33% | 19.98% | 9.89% | 32.41% | -6.31% |
Sonic Automotive Inc's profitability ratios show a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has experienced fluctuations, ranging from 0.90% in 2020 to a peak of 10.82% in 2021, before stabilizing around 6-8% in the following years. This ratio indicates the company's ability to generate profits from its operations relative to its assets.
- Return on assets (ROA) shows a similar pattern, starting at -1.37% in 2020 and increasing to 7.01% in 2021. Subsequently, the ratio continued to improve to around 3-4% in 2023 and 2024. ROA reflects the company's overall profitability in relation to its total assets.
- Return on total capital has shown significant growth, surging from 2.31% in 2020 to a high of 20.81% in 2021, before stabilizing at approximately 17-18% in the subsequent years. This ratio assesses the efficiency of the company in generating returns from both debt and equity investments.
- Return on equity (ROE) has been quite volatile, starting at -6.31% in 2020, and then soaring to 32.41% in 2021. ROE then displayed more moderate growth in 2022-2024, reaching levels around 19-20%. ROE evaluates the profitability of the company from the perspective of its shareholders.
Overall, Sonic Automotive Inc's profitability ratios indicate that the company has shown improvement in efficiently utilizing its assets and capital to generate profits, although some ratios reflect fluctuations in performance over the years. It is crucial for the company to maintain a stable and upward trend in these ratios for sustained financial health and investor confidence.