Sonic Automotive Inc (SAH)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	461,500	429,500	453,300	423,900	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
Revenue (ttm)	US$ in thousands	14,235,900	13,767,300	13,925,100	14,125,400	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
Operating profit margin		3.24%	3.12%	3.26%	3.00%	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%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $461,500K ÷ $14,235,900K
= 3.24%

Sonic Automotive Inc's operating profit margin has shown fluctuations over the past few years. From March 2020 to June 2020, the company experienced negative operating profit margins, indicating costs were exceeding revenues during that period. However, from September 2020 onwards, there was a positive trend in operating profit margins, peaking at 4.65% in March 2022.

There was a slight decline in operating profit margins in the following quarters, before a notable drop to 1.25% in September 2023. This could indicate challenges in managing costs or possibly a decrease in revenue growth during that period.

The company managed to improve its operating profit margin in the subsequent quarters, reaching 3.24% by December 2024. Overall, Sonic Automotive Inc's operating profit margin has shown variability, with periods of both growth and decline. It is essential for the company to continue monitoring and managing its costs effectively to sustain profitability and shareholder value.