Sonic Automotive Inc (SAH)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,062,300 | 1,015,000 | 944,700 | 904,400 | 891,900 | 857,500 | 876,700 | 854,800 | 895,200 | 1,106,900 | 1,170,000 | 1,135,000 | 1,076,400 | 1,005,800 | 946,400 | 826,400 | 814,800 | 774,102 | 744,702 | 721,987 |
| ROE | 20.33% | 19.32% | 20.14% | 19.07% | 19.98% | -5.99% | -3.71% | 4.55% | 9.89% | 33.94% | 31.87% | 34.53% | 32.40% | 30.80% | 30.13% | 24.46% | -6.31% | -8.06% | -12.52% | -13.49% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $216,000K ÷ $1,062,300K
= 20.33%
Sonic Automotive Inc's return on equity (ROE) has shown fluctuations over the past several quarters. The company experienced negative ROE figures in the first half of 2020, indicating that its net income was insufficient to cover shareholders' equity during that period. However, starting from March 2021, Sonic's ROE turned positive and exhibited a significant upward trend, reaching a peak of 34.53% by March 2022.
Subsequently, the ROE figures remained relatively high throughout the following quarters of 2022, signifying improved profitability and efficient utilization of equity. However, there was a notable decline in ROE in the second half of 2022 and continuing into the first half of 2023, possibly indicating challenges or changes in the company's financial performance.
By the end of 2023, Sonic Automotive managed to improve its ROE to about 19.98%, showing a recovery from the previous declining trend. The positive momentum continued into 2024, with ROE ranging between 19.07% to 20.33%, indicating sustained profitability and effective management of equity.
Overall, Sonic Automotive's ROE performance reflects a mix of challenges and successes, with the company showing resilience in improving its profitability and generating returns for its shareholders, despite facing fluctuations in the past few years.
Peer comparison
Dec 31, 2024