Sonic Automotive Inc (SAH)

Debt-to-equity 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-equity ratio		1.42	1.55	1.70	1.75	1.81	1.89	1.86	1.93	1.87	1.30	1.25	1.32	1.40	0.63	0.67	0.77	0.80	0.87	0.91	1.15

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,511,900K ÷ $1,062,300K
= 1.42

The debt-to-equity ratio of Sonic Automotive Inc has shown fluctuations over the last few years based on the provided data. It was recorded at 1.15 as of March 31, 2020, indicating that the company had more debt relative to its equity. The ratio gradually decreased to 0.63 as of September 30, 2021, suggesting a reduction in the company's reliance on debt financing.

However, the ratio increased significantly to 1.87 by December 31, 2022, indicating a higher level of debt compared to equity. This trend continued with slight fluctuations, reaching 1.42 as of December 31, 2024, although the ratio was lower compared to the peak in 2022.

Overall, fluctuations in the debt-to-equity ratio can signal changes in the company's capital structure and financial leverage. It is essential for investors and analysts to monitor this ratio to assess Sonic Automotive Inc's ability to meet its financial obligations and the level of risk associated with its capital structure.