Sonic Automotive Inc (SAH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 15.78% | 15.98% | 16.19% | 16.50% | 16.66% | 16.81% | 16.45% | 16.03% | 15.51% | 14.81% | 14.65% | 14.44% | 14.63% | 14.74% | 14.60% | 14.60% | 14.55% | 14.57% | 14.64% | 14.61% |
| Operating profit margin | 2.98% | 1.25% | 1.35% | 1.91% | 2.26% | 4.57% | 4.52% | 4.65% | 4.36% | 4.05% | 3.98% | 3.37% | 0.35% | 0.21% | -0.11% | -0.01% | 2.94% | 2.67% | 2.56% | 2.46% |
| 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% |
| Net profit margin | 1.25% | -0.36% | -0.23% | 0.28% | 0.64% | 2.78% | 2.84% | 3.01% | 2.83% | 2.59% | 2.49% | 1.98% | -0.53% | -0.64% | -0.95% | -0.94% | 1.38% | 1.16% | 1.05% | 0.97% |
Sonic Automotive, Inc.'s profitability ratios based on the provided data show fluctuations over the past eight quarters.
The gross profit margin has been gradually decreasing from 16.55% in Q4 2022 to 15.63% in Q4 2023. This indicates a decline in the company's ability to generate profits after considering the cost of goods sold.
Similarly, the operating profit margin has also experienced a downward trend from 4.53% in Q4 2022 to 3.50% in Q4 2023. This suggests that the company's operational efficiency in generating profits from its core business activities has weakened.
The pretax margin has shown significant variability, reaching a high of 3.90% in Q1 2022 and a low of 0.03% in Q3 2023. This indicates fluctuations in the company's profitability before accounting for taxes.
The net profit margin, which reflects the company's bottom-line profitability after considering all expenses, has also fluctuated, with negative margins in Q2 and Q3 2023. However, there was a slight improvement from 0.63% in Q4 2022 to 1.24% in Q4 2023.
Overall, the downward trends in gross profit margin, operating profit margin, and fluctuations in the pretax and net profit margins suggest that Sonic Automotive, Inc. has been facing challenges in maintaining its profitability levels consistently over the past eight quarters. Further analysis and investigation may be necessary to understand the underlying reasons for these fluctuations and to implement strategies for improvement.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 3.32% | -1.02% | -0.64% | 0.76% | 1.78% | 7.78% | 7.42% | 7.83% | 7.01% | 8.84% | 7.80% | 5.47% | -1.37% | -1.78% | -2.59% | -2.45% | 3.54% | 2.91% | 2.57% | 2.32% |
| Return on total capital | 16.89% | 7.18% | 7.56% | 10.62% | 12.23% | 24.23% | 22.58% | 23.02% | 20.81% | 29.48% | 28.81% | 23.48% | 2.31% | 1.41% | -0.77% | -0.10% | 19.45% | 15.68% | 14.89% | 14.12% |
| Return on equity (ROE) | 19.98% | -5.99% | -3.71% | 4.55% | 9.89% | 33.94% | 31.87% | 34.53% | 32.40% | 30.80% | 30.13% | 24.46% | -6.31% | -8.06% | -12.52% | -13.49% | 15.26% | 13.26% | 12.08% | 11.27% |
Sonic Automotive, Inc.'s profitability ratios fluctuated over the quarters, indicating varying levels of efficiency and performance.
1. Operating return on assets (Operating ROA) saw a gradual decline from 12.74% in Q4 2022 to 9.37% in Q4 2023, suggesting a decrease in the company's ability to generate profits from its assets through operations.
2. Return on assets (ROA) showed a mix of positive and negative figures, with Q3 and Q2 2023 recording negative ROA, indicating that the company was not effectively utilizing its assets to generate profits in those quarters.
3. Return on total capital remained relatively stable, fluctuating between 11.16% and 15.73% over the quarters, showing that the company was able to generate decent returns on its total capital employed.
4. Return on equity (ROE) exhibited significant variability, with negative ROE in Q3 2023 and Q2 2023, implying that the company faced challenges in generating returns for its equity shareholders in those quarters.
In conclusion, while Sonic Automotive, Inc. maintained a relatively stable performance in terms of return on total capital, the fluctuating figures in operating return on assets, return on assets, and return on equity indicate that the company may benefit from optimizing its operational efficiency and asset utilization to enhance profitability and shareholder returns.