Sonic Automotive's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 10.28.
Sonic Automotive's Days Inventory for the
three
months ended in Mar. 2026 was 61.08.
Sonic Automotive's Days Payable for the
three
months ended in Mar. 2026 was 4.67.
Therefore, Sonic Automotive's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 66.69.
Sonic Automotive (NYSE:SAH) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Sonic Automotive Cash Conversion Cycle Related Terms
Sonic Automotive Cash Conversion Cycle Historical Data
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The historical data trend for Sonic Automotive's Cash Conversion Cycle 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.
SAH vs CARG, MCW, DRVN: Cash Conversion Cycle Comparison
For the Auto & Truck Dealerships subindustry, Sonic Automotive's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle 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.
Sonic Automotive Cash Conversion Cycle vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's Cash Conversion Cycle falls into.
Sonic Automotive Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Sonic Automotive's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (SAH) has a Cash Conversion Cycle of 66.69 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sonic Automotive and its competitors.
Is Sonic Automotive's Cash Conversion Cycle too high?
Sonic Automotive's current Cash Conversion Cycle is 66.69. The Vehicles & Parts industry median Cash Conversion Cycle is 67.44. Sonic Automotive's value of 66.69 is 1.1% below this industry median. Overall, Sonic Automotive has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sonic Automotive's Cash Conversion Cycle compare to CARG and MCW?
Sonic Automotive's Cash Conversion Cycle of 66.69 can be compared against companies in the Vehicles & Parts industry. The industry median Cash Conversion Cycle is 67.44. Sonic Automotive's value of 66.69 is 1.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Vehicles & Parts company?
The median Cash Conversion Cycle among Vehicles & Parts companies is 67.44, based on 1,326 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonic Automotive's current Cash Conversion Cycle of 66.69 is 1.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sonic Automotive and its competitors. For the Vehicles & Parts industry, the median Cash Conversion Cycle is 67.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Automotive's current Cash Conversion Cycle is 66.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonic Automotive stock overvalued right now?
Based on GuruFocus' analysis, Sonic Automotive (SAH) is currently considered Significantly Overvalued. The stock's GF Value™ is $64.31, compared to a current price of $84.51 — trading 31.4% above its estimated fair value. The current Cash Conversion Cycle is 66.69 and 1.1% below the Vehicles & Parts industry median of 67.44. Sonic Automotive's overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Sonic Automotive (SAH), the current Cash Conversion Cycle is 66.69 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sonic Automotive (SAH) Overvalued in 2026?
Based on GuruFocus' analysis, Sonic Automotive stock appears to be overvalued.
The current stock price of $84.51 is trading 31.4% above its estimated GF Value™ of $64.31.
GuruFocus considers Sonic Automotive to be Significantly Overvalued.
Key valuation signals for SAH:
Cash Conversion Cycle: 66.69
GF Value™: $64.31 vs. price of $84.51 (31.4% above fair value)
Industry Position: 1.1% below the Vehicles & Parts median
No single metric tells the full story. See the SAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 107 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 18 EchoPark used-vehicle stores in 10 states, 16 collision centers, and 20 powersports locations. The franchise stores derive revenue from new and used vehicles plus parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 86% of franchise new-vehicle revenue, while Honda, BMW, Mercedes, and Toyota constitute about 56% of new-vehicle revenue. BMW is the largest brand at about 23%. 2025 revenue was $15.2 billion, with Texas and California constituting 51% of the total. EchoPark's portion was $2.1 billion.
82GF Score
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