Sonic Automotive Inc (SAH)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 461,500 | 423,600 | 314,000 | 538,400 | 33,900 |
| Revenue | US$ in thousands | 14,233,300 | 14,238,800 | 13,905,900 | 12,344,200 | 9,728,520 |
| Operating profit margin | 3.24% | 2.97% | 2.26% | 4.36% | 0.35% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $461,500K ÷ $14,233,300K
= 3.24%
To analyze Sonic Automotive Inc's operating profit margin based on the provided data:
- In December 31, 2020, the operating profit margin was relatively low at 0.35%, indicating that for every dollar of sales, the company generated only $0.0035 in operating profit.
- By December 31, 2021, there was a significant improvement in the operating profit margin to 4.36%, suggesting that the company became more efficient in managing its operating expenses and generating profits from its core operations.
- However, in December 31, 2022, the operating profit margin decreased to 2.26%, which may indicate potential challenges or increased costs impacting the company's profitability.
- The operating profit margin then slightly improved to 2.97% by December 31, 2023, showing some recovery in profitability but still below the levels seen in 2021.
- By December 31, 2024, the operating profit margin further increased to 3.24%, indicating ongoing efforts to enhance operational efficiency and profitability, albeit not reaching the peak levels observed in 2021.
Overall, Sonic Automotive Inc's operating profit margin has shown fluctuations over the years, with improvements in some periods and declines in others. The company may need to focus on managing costs effectively and driving revenue growth to sustain and enhance its operating profit margin in the future.
Peer comparison
Dec 31, 2024