Sonic Automotive Inc (SAH)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 461,500 | 429,500 | 453,300 | 423,900 | 423,600 | 178,000 | 189,500 | 266,000 | 314,000 | 617,800 | 594,300 | 604,900 | 538,400 | 484,498 | 455,531 | 343,675 | 33,900 | 20,318 | -10,919 | -1,490 |
| Long-term debt | US$ in thousands | 1,511,900 | 1,578,200 | 1,602,300 | 1,583,400 | 1,616,500 | 1,623,100 | 1,629,500 | 1,650,800 | 1,672,200 | 1,442,400 | 1,462,000 | 1,493,200 | 1,510,700 | 637,774 | 634,712 | 637,377 | 651,800 | 669,684 | 677,488 | 830,839 |
| 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 |
| Return on total capital | 17.93% | 16.56% | 17.80% | 17.04% | 16.89% | 7.18% | 7.56% | 10.62% | 12.23% | 24.23% | 22.58% | 23.02% | 20.81% | 29.48% | 28.81% | 23.48% | 2.31% | 1.41% | -0.77% | -0.10% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $461,500K ÷ ($1,511,900K + $1,062,300K)
= 17.93%
Sonic Automotive Inc's return on total capital has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The return on total capital was negative in the initial quarters of March 31, 2020, and June 30, 2020, indicating challenges in generating profits relative to the total capital employed.
However, the company managed to improve its performance, with a significant positive return on total capital recorded in the subsequent quarters, reaching a peak of 29.48% on September 30, 2021. This indicates improved efficiency in utilizing the total capital to generate returns for the business.
Subsequently, the return on total capital experienced some fluctuations but generally maintained at a moderate to relatively high level between 2021 and 2024. The return was recorded at 17.93% as of December 31, 2024, reflecting the company's ability to effectively utilize its total capital to generate profits.
Overall, Sonic Automotive Inc's return on total capital demonstrates a mixed performance over the analyzed period, showing periods of improvement and stability in capital utilization efficiency. Monitoring this ratio will be essential for assessing the company's profitability and capital efficiency in the future.
Peer comparison
Dec 31, 2024