Sonic Automotive Inc (SAH)

Debt-to-capital ratio

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
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
Debt-to-capital ratio 0.59 0.61 0.63 0.64 0.64 0.65 0.65 0.66 0.65 0.57 0.56 0.57 0.58 0.39 0.40 0.44 0.44 0.46 0.48 0.54

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,511,900K ÷ ($1,511,900K + $1,062,300K)
= 0.59

The debt-to-capital ratio of Sonic Automotive Inc has shown a fluctuating trend over the past few years. The ratio decreased from 0.54 as of March 31, 2020, to a low of 0.39 as of September 30, 2021, indicating a reduction in debt relative to capital during this period. However, the ratio increased steadily thereafter, reaching 0.65 as of March 31, 2023, and has since remained relatively stable between 0.63 and 0.59 as of the end of December 31, 2024. This suggests that the company's reliance on debt to finance its operations has increased in recent years, potentially indicating higher financial leverage and risk. Further analysis and monitoring of this ratio will be crucial for assessing Sonic Automotive's financial stability and risk management strategies moving forward.