Sonic Automotive Inc (SAH)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 216,000 | 196,100 | 190,300 | 172,500 | 178,200 | -51,400 | -32,500 | 38,900 | 88,500 | 375,700 | 372,900 | 391,900 | 348,800 | 309,824 | 285,142 | 202,133 | -51,400 | -62,417 | -93,225 | -97,417 |
| Total assets | US$ in thousands | 5,895,700 | 5,758,200 | 5,804,200 | 5,407,600 | 5,364,600 | 5,050,300 | 5,081,600 | 5,148,000 | 4,978,300 | 4,828,300 | 5,023,500 | 5,006,200 | 4,975,100 | 3,505,960 | 3,656,340 | 3,692,230 | 3,746,000 | 3,503,920 | 3,595,420 | 3,976,740 |
| ROA | 3.66% | 3.41% | 3.28% | 3.19% | 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $216,000K ÷ $5,895,700K
= 3.66%
Sonic Automotive Inc's return on assets (ROA) has displayed fluctuating trends over the past few years, reflecting varying levels of efficiency in generating profits from its assets. The ROA started at negative levels in early 2020, indicating that the company's assets were not effectively utilized to generate profits during that period.
However, there was a notable turnaround by the first quarter of 2021 when the ROA turned positive, with a significant increase in profitability generated from its assets. This positive trend continued through 2021 and into 2022 when ROA peaked at around 7.83% in March 2022, indicating a strong performance in asset utilization.
Subsequently, the ROA experienced a slight decline towards the end of 2022 and into early 2023, with the ratio briefly dipping into negative territory again. However, Sonic Automotive Inc managed to recover and maintain a positive ROA between 3% and 3.66% throughout the rest of 2023 and into 2024.
Overall, Sonic Automotive Inc's ROA demonstrates a mixed performance characterized by both periods of strong asset efficiency and some challenges in effectively utilizing assets to generate profits. Monitoring and analyzing ROA trends can provide valuable insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024