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Operating Margin % is calculated as Operating Income divided by its Revenue. Sonic Automotive's Operating Income for the three months ended in Dec. 2023 was $118 Mil. Sonic Automotive's Revenue for the three months ended in Dec. 2023 was $3,585 Mil. Therefore, Sonic Automotive's Operating Margin % for the quarter that ended in Dec. 2023 was 3.30%.
Good Sign:
Sonic Automotive Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Sonic Automotive's Operating Margin % or its related term are showing as below:
Sonic Automotive's 5-Year Average Operating Margin % Growth Rate was 12.20% per year.
Sonic Automotive's Operating Income for the three months ended in Dec. 2023 was $118 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $503 Mil.
The historical data trend for Sonic Automotive's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto & Truck Dealerships subindustry, Sonic Automotive's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Sonic Automotive's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as
Operating Margin % | = | Operating Income (A: Dec. 2023 ) | / | Revenue (A: Dec. 2023 ) |
= | 502.9 | / | 14372.4 | |
= | 3.50 % |
Sonic Automotive's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as
Operating Margin % | = | Operating Income (Q: Dec. 2023 ) | / | Revenue (Q: Dec. 2023 ) |
= | 118.2 | / | 3584.8 | |
= | 3.30 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sonic Automotive (NYSE:SAH) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Thank you for viewing the detailed overview of Sonic Automotive's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Heath Byrd | officer: EVP and CFO | 4401 COLWICK ROAD, CHARLOTTE NC 28211 |
Jeff Dyke | officer: EVP of Operations | C/O SONIC AUTOMOTIVE, INC., 6415 IDLEWILD ROAD, SUITE 109, CHARLOTTE NC 28212 |
David Bruton Smith | director, officer: Executive Vice President | C/O SONIC AUTOMOTIVE, INC., 6415 IDLEWILD ROAD, SUITE 109, CHARLOTTE NC 28212 |
Paul P. Rusnak | 10 percent owner | 325 W. COLORADO BLVD.,, PO BOX 70489, PASADENA CA 91117-7489 |
Michael Edward Hodge | director | 4401 COLWICK ROAD, CHARLOTTE NC 28211 |
Keri A Kaiser | director | 14902 PRESTON ROAD, SUITE 404, #384, DALLAS TX 75254 |
Victor H Doolan | director | 35 VIA MONARCA, DANA POINT CA 92629 |
Marcus G Smith | 10 percent owner | 5555 CONCORD PARKWAY SOUTH, CONCORD NC 28027 |
Sonic Financial Corp | 10 percent owner | 5401 E INDEPENDENCE BLVD, CHARLOTTE NC 28212 |
O Bruton Smith | director, 10 percent owner, officer: Chairman and CEO | 5401 E INDEPENDENCE BLVD, CHARLOTTE NC 28212 |
R Eugene Taylor | director | BANK OF AMERICA CORP, 100 NORTH TRYON ST NC1-007-57-01, CHARLOTTE NC 28255 |
Bryan Scott Smith | director, officer: Vice Chairman and CSO | 5401 E INDEPENDENCE BLVD, CHARLOTTE NC 28212 |
Harris John W. Iii | director | 4725 PIEDMONT ROW DRIVE, SUITE 800, CHARLOTTE NC 28210 |
Byrd Bernard Clinton Jr | director | 4401 COLWICK ROAD, CHARLOTTE NC 28211 |
William I Belk | director | 6100 FAIRVIEW RD #640, CHARLOTTE NC 28210 |
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