Sonic Automotive Inc (SAH)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,062,300 | 891,900 | 895,200 | 1,076,400 | 814,800 |
| ROE | 20.33% | 19.98% | 9.89% | 32.41% | -6.31% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $216,000K ÷ $1,062,300K
= 20.33%
Sonic Automotive Inc's return on equity (ROE) has shown a fluctuating trend over the years based on the provided data. In 2020, the ROE was negative at -6.31%, indicating that the company's net income was insufficient to cover shareholders' equity. However, there was a significant improvement in 2021, with the ROE jumping to 32.41%, suggesting that the company generated a higher net income relative to its equity.
In 2022, the ROE dipped to 9.89%, indicating a decrease in profitability compared to the previous year. The following year, in 2023, the ROE increased to 19.98%, reflecting a recovery in profitability. Finally, by the end of 2024, the ROE reached 20.33%, indicating a continued improvement in the company's ability to generate profit from its shareholders' equity.
Overall, Sonic Automotive Inc's ROE has shown variability but with a general upward trend in recent years, indicating their improving efficiency in utilizing equity to generate profits for shareholders. It will be important to monitor this ratio in the future to assess the company's ongoing financial performance and profitability.
Peer comparison
Dec 31, 2024