Sonic Automotive Inc (SAH)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	256,100	241,900	190,000	458,200	-35,500
Revenue	US$ in thousands	14,233,300	14,238,800	13,905,900	12,344,200	9,728,520
Pretax margin		1.80%	1.70%	1.37%	3.71%	-0.36%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $256,100K ÷ $14,233,300K
= 1.80%

Sonic Automotive Inc's pretax margin, a key financial ratio reflecting the company's operating efficiency and profitability before taxes, has shown fluctuating trends over the years:

- As of December 31, 2020, Sonic Automotive Inc had a negative pretax margin of -0.36%, indicating that the company's operating income was not sufficient to cover its pre-tax expenses.

- By December 31, 2021, Sonic Automotive Inc managed to generate a positive pretax margin of 3.71%, a notable turnaround from the previous year's performance. This improvement suggests better cost management or revenue growth.

- However, in the following years, Sonic Automotive Inc's pretax margin experienced some volatility. By December 31, 2022, the pretax margin decreased to 1.37%, indicating a dip in profitability compared to the prior year.

- Despite the fluctuation, Sonic Automotive Inc's pretax margin increased slightly to 1.70% by December 31, 2023, suggesting a moderate recovery in profitability.

- As of the most recent data available on December 31, 2024, Sonic Automotive Inc's pretax margin further improved to 1.80%, signifying continued efforts to enhance operational efficiency and financial performance.

In summary, Sonic Automotive Inc's pretax margin has exhibited varying performance levels over the years, with the company making progress in profitability following initial challenges. Continued monitoring and strategic initiatives may be necessary to sustain and improve the pretax margin in the future.