Sonic Automotive Inc (SAH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	891,900	895,200	1,076,400	814,800	944,800
ROE		19.98%	9.89%	32.41%	-6.31%	15.25%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $178,200K ÷ $891,900K
= 19.98%

Sonic Automotive, Inc.'s return on equity (ROE) has displayed significant fluctuations over the past five years. In 2023, the ROE improved to 19.98% from 9.89% in 2022, indicating that the company generated a higher return for its shareholders relative to the equity invested. However, this improvement follows a downward trend from the exceptionally high ROE of 32.41% in 2021. The negative ROE of -6.31% in 2020 suggests that Sonic Automotive faced challenges or experienced losses that year. The ROE rebounded to a more favorable level of 15.26% in 2019, indicating improved profitability and efficiency in utilizing shareholder equity. Overall, Sonic Automotive's ROE performance has been mixed, potentially reflecting shifts in business strategy, financial performance, or market conditions during the period under review.