Sonic Automotive Inc (SAH)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	241,900	4,800	30,000	124,700	190,000	494,700	490,300	513,900	458,100	426,119	394,622	281,050	-35,500	-64,742	-104,863	-105,421	199,237	169,292	151,359	139,816
Revenue (ttm)	US$ in thousands	14,233,200	14,269,000	14,074,700	13,935,600	13,908,700	13,509,270	13,147,070	13,004,340	12,345,730	11,969,180	11,445,730	10,207,390	9,729,990	9,690,070	9,853,240	10,363,490	10,454,340	10,280,200	10,048,330	9,940,000
Pretax margin		1.70%	0.03%	0.21%	0.89%	1.37%	3.66%	3.73%	3.95%	3.71%	3.56%	3.45%	2.75%	-0.36%	-0.67%	-1.06%	-1.02%	1.91%	1.65%	1.51%	1.41%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $241,900K ÷ $14,233,200K
= 1.70%

The pretax margin of Sonic Automotive, Inc. has shown some fluctuations over the past eight quarters. In the most recent quarter, Q4 2023, the pretax margin stood at 1.68%, which represents a significant improvement compared to the previous quarter's 0.03%. However, this current figure is still lower than the pretax margins reported in the earlier quarters of 2022, where values ranged from 3.57% to 3.90%.

Overall, the company's pretax margin has been somewhat volatile, with occasional peaks and troughs. It is essential for Sonic Automotive to closely monitor and manage its operating expenses and revenue generation strategies to stabilize and potentially increase its pretax margin in the future.