Sonic Automotive Inc (SAH)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 5,895,700 | 5,758,200 | 5,804,200 | 5,407,600 | 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 |
| Operating ROA | 7.83% | 7.46% | 7.81% | 7.84% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $461,500K ÷ $5,895,700K
= 7.83%
Operating return on assets (Operating ROA) is a key financial metric that indicates the efficiency of Sonic Automotive Inc in generating profits from its assets used in operations.
The Operating ROA for Sonic Automotive Inc has fluctuated over the observed period. It began with negative figures in the first two quarters of 2020, indicating that the company was generating operating losses relative to its assets. However, there was a significant improvement in the following quarters of 2020 and into 2021, with positive ROA figures indicating improved operational efficiency and profitability.
The trend continued positively with a steady increase until the third quarter of 2021, where the Operating ROA peaked at 13.82%. This suggests that Sonic Automotive Inc was effectively utilizing its assets to generate operating income during this period.
However, from the fourth quarter of 2021 to the second quarter of 2024, there was a gradual decline in the Operating ROA figures, indicating a decrease in the company's ability to generate profits from its operational assets.
It is important for Sonic Automotive Inc to closely monitor its Operating ROA and take necessary steps to improve efficiency and profitability, such as optimizing asset utilization, managing operating expenses, and driving revenue growth to enhance shareholder value and long-term sustainability.
Peer comparison
Dec 31, 2024