Sonic Automotive Inc (SAH)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	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	144,137	119,651	105,759	96,065
Total stockholders’ equity	US$ in thousands	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	944,800	902,425	875,725	852,286
ROE		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%	15.26%	13.26%	12.08%	11.27%

December 31, 2023 calculation

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

Sonic Automotive, Inc.'s Return on Equity (ROE) has displayed variability over the past eight quarters. In Q4 2023, the ROE stood at 19.98%, indicating a strong performance in generating profit relative to shareholder equity. However, in Q3 2023 and Q2 2023, the ROE turned negative at -5.99% and -3.71% respectively, suggesting a loss relative to shareholder investment during these periods. The positive ROE of 4.55% in Q1 2023 indicates some recovery in profitability.

Comparing the latest quarter to the same quarter a year ago, the Q4 2023 ROE of 19.98% was higher than the Q4 2022 ROE of 9.89%, showcasing an improvement in profitability over the year. Notably, the company reported exceptionally high ROE figures in Q3 and Q2 of 2022, at 33.95% and 31.87% respectively, followed by a slightly lower ROE of 34.54% in Q1 2022.

Overall, Sonic Automotive, Inc.'s ROE has fluctuated significantly over the analyzed period, reflecting changes in the company's ability to generate profit from shareholders' equity. An in-depth analysis of the factors driving these fluctuations would provide further insights into the company's financial performance and potential areas for improvement.