Sonic Automotive Inc (SAH)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	178,200	88,500	348,900	-51,400	144,100
Total assets	US$ in thousands	5,364,600	4,978,300	4,975,100	3,746,000	4,071,040
ROA		3.32%	1.78%	7.01%	-1.37%	3.54%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $178,200K ÷ $5,364,600K
= 3.32%

Sonic Automotive, Inc.'s return on assets (ROA) has fluctuated over the past five years. In 2023, the ROA increased to 3.32% from 1.78% in 2022, indicating an improved ability to generate profit from its assets. However, compared to the 7.01% ROA in 2021, the current ROA is lower, suggesting a potential decrease in efficiency in asset utilization. The negative ROA in 2020 highlights a period of unprofitability, but the company managed to rebound in 2019 with a ROA of 3.54%.

Overall, the varying ROA figures indicate fluctuations in Sonic Automotive's profitability relative to its assets. It would be beneficial for the company to further analyze the underlying reasons for these changes to identify areas for improvement in asset management and profitability.