Sonic Automotive Inc (SAH)

Operating profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	423,600	178,000	189,500	266,000	314,000	617,800	594,300	604,900	538,400	484,498	455,531	343,675	33,900	20,318	-10,919	-1,490	307,700	274,175	257,116	244,790
Revenue (ttm)	US$ in thousands	14,233,200	14,269,000	14,074,700	13,935,600	13,908,700	13,509,270	13,147,070	13,004,340	12,345,730	11,969,180	11,445,730	10,207,390	9,729,990	9,690,070	9,853,240	10,363,490	10,454,340	10,280,200	10,048,330	9,940,000
Operating profit margin		2.98%	1.25%	1.35%	1.91%	2.26%	4.57%	4.52%	4.65%	4.36%	4.05%	3.98%	3.37%	0.35%	0.21%	-0.11%	-0.01%	2.94%	2.67%	2.56%	2.46%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $423,600K ÷ $14,233,200K
= 2.98%

Sonic Automotive, Inc.'s operating profit margin has shown a slight decline in the most recent quarter, dropping to 3.50% in Q4 2023 from 3.90% in Q3 2023. This trend is part of a gradual decrease observed throughout the year, with operating profit margins peaking at 4.59% in Q1 2022. While the company has managed to maintain its margins above 4% for the majority of the periods analyzed, the recent downward trajectory may indicate potential challenges in controlling operating expenses or optimizing revenue generation. Further analysis of the company's cost structure and pricing strategies may be necessary to understand the factors influencing these margin fluctuations.