Sonic Automotive Inc (SAH)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	5,364,600	4,978,300	4,975,100	3,746,000	4,071,040
Operating ROA		7.90%	6.31%	10.82%	0.90%	7.56%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $423,600K ÷ $5,364,600K
= 7.90%

Sonic Automotive, Inc.'s operating return on assets (operating ROA) has shown some fluctuation over the past five years. In 2023, the operating ROA was 9.37%, a decrease from the previous year's 12.74%. This decline may raise concerns about the company's ability to generate operating income relative to its total assets.

However, comparing the 2023 operating ROA to the figures from 2021, 2020, and 2019, it is evident that the current performance is relatively solid. The operating ROA in 2023 (9.37%) is higher than both 2021 (10.82%) and 2020 (8.11%), indicating an improvement in efficiency in utilizing assets to generate operating income. Moreover, the 2023 figure is slightly higher than that of 2019 (8.07%), suggesting a positive trend in operational profitability over the past five years.

Overall, while there was a year-over-year decrease in operating ROA for Sonic Automotive, Inc. in 2023, the company has generally shown an upward trend in efficiently utilizing its assets to generate operating income over the past five years. This indicates a moderately healthy operational performance, which may require monitoring to ensure sustained profitability.