Sonic Automotive Inc (SAH)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	423,600	314,000	538,400	33,900	307,700
Revenue	US$ in thousands	14,238,800	13,905,900	12,344,200	9,728,520	10,454,300
Operating profit margin		2.97%	2.26%	4.36%	0.35%	2.94%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $423,600K ÷ $14,238,800K
= 2.97%

Sonic Automotive, Inc.'s operating profit margin has fluctuated over the past five years, ranging from 3.11% in 2020 to 4.53% in 2022. In 2023, the operating profit margin decreased to 3.50%. This indicates that for every dollar of revenue generated, the company retained 3.50 cents as operating profit after accounting for operating expenses.

The trend suggests some variability in the company's ability to control operating costs and generate profits from its core business operations during the period under review. Further analysis of the factors impacting operating expenses and revenue growth may provide insights into the fluctuations observed in Sonic Automotive, Inc.'s operating profit margin over the years.