Sonic Automotive Inc (SAH)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 636,978 | 846,222 | 851,283 | 880,939 |
| Total assets | US$ in thousands | 5,364,600 | 5,050,300 | 5,081,600 | 5,148,000 | 4,978,300 | 4,828,300 | 5,023,500 | 5,006,200 | 4,975,100 | 3,505,960 | 3,656,340 | 3,692,230 | 3,746,000 | 3,503,920 | 3,595,420 | 3,976,740 | 4,071,040 | 4,117,890 | 4,119,330 | 4,139,090 |
| Debt-to-assets ratio | 0.30 | 0.32 | 0.32 | 0.32 | 0.34 | 0.30 | 0.29 | 0.30 | 0.30 | 0.18 | 0.17 | 0.17 | 0.17 | 0.19 | 0.19 | 0.21 | 0.16 | 0.21 | 0.21 | 0.21 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,616,500K ÷ $5,364,600K
= 0.30
The debt-to-assets ratio for Sonic Automotive, Inc. has shown a relatively stable trend over the past eight quarters, ranging between 0.58 and 0.67. This ratio indicates that, on average, the company finances approximately 65%-67% of its assets through debt, with the remaining 33%-35% being funded by equity.
A higher debt-to-assets ratio suggests that the company relies more heavily on debt to finance its operations and investments, which can increase financial risk due to interest payments and potential inability to meet debt obligations. Conversely, a lower ratio indicates a stronger financial position with a greater proportion of assets financed by equity.
While Sonic Automotive's debt-to-assets ratio has not shown drastic fluctuations, it would be beneficial for stakeholders to monitor this ratio over time to assess the company's leverage levels and financial health. Additionally, comparing this ratio to industry averages and competitors can provide further insight into Sonic Automotive's financial performance and position within the market.
Peer comparison
Dec 31, 2023