Sonic Automotive Inc (SAH)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	423,600	314,000	538,400	33,900	307,700
Long-term debt	US$ in thousands	1,616,500	1,672,200	1,510,700	651,800	636,978
Total stockholders’ equity	US$ in thousands	891,900	895,200	1,076,400	814,800	944,800
Return on total capital		16.89%	12.23%	20.81%	2.31%	19.45%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $423,600K ÷ ($1,616,500K + $891,900K)
= 16.89%

Sonic Automotive, Inc.'s return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 11.16%, showing a decrease from the previous year's 15.42%. Despite this decline, the company's return on total capital remains relatively healthy compared to 2020 and 2019 when it was 10.39% and 10.17%, respectively. The highest return on total capital was recorded in 2022 at 15.42%, indicating a strong performance that year. Overall, Sonic Automotive, Inc. has demonstrated varying levels of efficiency in generating returns from its total capital in recent years.