Sonic Automotive Inc (SAH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.77% | 16.66% | 15.51% | 14.63% | 14.55% |
| Operating profit margin | 2.97% | 2.26% | 4.36% | 0.35% | 2.94% |
| Pretax margin | 1.70% | 1.37% | 3.71% | -0.36% | 1.91% |
| Net profit margin | 1.25% | 0.64% | 2.83% | -0.53% | 1.38% |
Sonic Automotive, Inc.'s profitability ratios have shown some fluctuations over the past five years. The gross profit margin, which indicates the efficiency of the company in generating revenue after accounting for the cost of goods sold, ranged from 14.55% in 2019 to 16.55% in 2022, with a slight decline to 15.63% in 2023.
The operating profit margin, a measure of the company's ability to generate profits from its core operations, ranged from 3.11% in 2020 to 4.53% in 2022. It decreased to 3.50% in 2023.
The pretax margin, which reflects the company's profitability after accounting for operating expenses but before taxes, exhibited some variability, ranging from a negative value of -0.36% in 2020 to a peak of 3.70% in 2021. In 2023, it stood at 1.68%.
The net profit margin, a key indicator of overall profitability, ranged from -0.53% in 2020 to 2.81% in 2021. In 2023, it was 1.24%.
Overall, Sonic Automotive, Inc.'s profitability ratios have shown mixed results over the past five years, with fluctuations in key margins that may indicate varying levels of operational efficiency and profitability during this period.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.90% | 6.31% | 10.82% | 0.90% | 7.56% |
| Return on assets (ROA) | 3.32% | 1.78% | 7.01% | -1.37% | 3.54% |
| Return on total capital | 16.89% | 12.23% | 20.81% | 2.31% | 19.45% |
| Return on equity (ROE) | 19.98% | 9.89% | 32.41% | -6.31% | 15.25% |
Sonic Automotive, Inc. has shown varying levels of profitability over the past five years as indicated by its profitability ratios.
- Operating return on assets (Operating ROA) has fluctuated, ranging from 8.07% in 2019 to 12.74% in 2022, with a notable decrease to 9.37% in 2023. This ratio measures the company's ability to generate operating income from its assets.
- Return on assets (ROA) has also been inconsistent, with negative ROA in 2020 at -1.37% and a significant drop in 2022 to 1.78%. The ratio improved in 2023 but remained relatively low at 3.32%. ROA reflects the company's ability to generate profit from its total assets.
- Return on total capital has generally shown an upward trend, with the highest figure of 15.42% in 2022 and a slight decrease to 11.16% in 2023. This ratio indicates the overall profitability of the company's capital investments.
- Return on equity (ROE) has displayed significant volatility, ranging from a negative figure of -6.31% in 2020 to a peak of 32.41% in 2021. In 2023, ROE stood at 19.98%. ROE reflects the return generated for shareholders based on their equity investment.
Overall, Sonic Automotive, Inc. has experienced fluctuations in profitability ratios over the past five years, suggesting varying levels of efficiency in generating profits from assets, capital, and equity. Further analysis may be required to understand the factors contributing to these fluctuations and to evaluate the company's long-term profitability prospects.