Sonic Automotive Inc (SAH)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	5,364,600	5,050,300	5,081,600	5,148,000	4,978,300	4,828,300	5,023,500	5,006,200	4,975,100	3,505,960	3,656,340	3,692,230	3,746,000	3,503,920	3,595,420	3,976,740	4,071,040	4,117,890	4,119,330	4,139,090
Operating ROA		7.90%	3.52%	3.73%	5.17%	6.31%	12.80%	11.83%	12.08%	10.82%	13.82%	12.46%	9.31%	0.90%	0.58%	-0.30%	-0.04%	7.56%	6.66%	6.24%	5.91%

December 31, 2023 calculation

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

The operating return on assets (operating ROA) for Sonic Automotive, Inc. has shown a declining trend over the past eight quarters. The operating ROA was highest in Q4 2022 at 12.80% and has steadily decreased since then. In Q4 2023, the operating ROA reached its lowest point at 9.37%. This could indicate decreasing efficiency in utilizing assets to generate operating profits over time. Further analysis and investigation into the company's operations and asset management are warranted to understand the factors contributing to this trend and to identify potential areas for improvement.