Sonic Automotive Inc (SAH)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 216,000 | 178,200 | 88,500 | 348,900 | -51,400 |
| Total assets | US$ in thousands | 5,895,700 | 5,364,600 | 4,978,300 | 4,975,100 | 3,746,000 |
| ROA | 3.66% | 3.32% | 1.78% | 7.01% | -1.37% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $216,000K ÷ $5,895,700K
= 3.66%
Based on the provided data for Sonic Automotive Inc's return on assets (ROA) over the past five years, it is evident that the company's performance in generating profit relative to its assets has experienced fluctuations.
In December 2020, Sonic Automotive Inc's ROA was in negative territory at -1.37%, indicating that the company was not efficiently utilizing its assets to generate profits. However, by December 2021, the ROA improved significantly to 7.01%, suggesting a turnaround in asset efficiency and profitability.
In the following years, Sonic Automotive Inc's ROA continued to show variability. In December 2022, the ROA dropped to 1.78%, indicating a slight decrease in asset efficiency compared to the previous year. However, by December 2023 and December 2024, the company managed to improve its ROA to 3.32% and 3.66%, respectively, demonstrating a positive trend in utilizing assets to generate returns.
Overall, Sonic Automotive Inc's ROA performance reflects a mix of challenges and improvements over the five-year period, with notable fluctuations in asset efficiency and profitability. Further analysis and monitoring of ROA trends will be essential to assess the company's effectiveness in utilizing its assets to drive financial performance.
Peer comparison
Dec 31, 2024