Sonic Automotive Inc (SAH)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 5,895,700 | 5,364,600 | 4,978,300 | 4,975,100 | 3,746,000 |
| Operating ROA | 7.83% | 7.90% | 6.31% | 10.82% | 0.90% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $461,500K ÷ $5,895,700K
= 7.83%
Sonic Automotive Inc's operating return on assets (operating ROA) has witnessed fluctuations over the years. The company's operating ROA stood at 0.90% as of December 31, 2020, reflecting a relatively low return generated from its operating activities compared to the assets employed.
Significantly, the operating ROA experienced a notable increase to 10.82% by December 31, 2021, indicating a substantial improvement in the efficiency of utilizing assets to generate operating profits. However, there was a decline in the operating ROA to 6.31% by December 31, 2022, suggesting a decrease in profitability relative to the assets.
In the subsequent years, Sonic Automotive Inc's operating ROA continued to show a moderate recovery, reaching 7.90% by December 31, 2023, and remaining stable at 7.83% by December 31, 2024. These relatively steady figures suggest that the company's ability to generate profits from its operating activities in relation to its asset base has stabilized at a moderately positive level.
Overall, while there have been fluctuations in Sonic Automotive Inc's operating ROA over the years, the recent trend indicates a recovery and a relatively stable performance in terms of efficiently utilizing its assets to generate operating returns.
Peer comparison
Dec 31, 2024