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Sonic Automotive (STU:SA8A) Debt-to-EBITDA : 6.86 (As of Mar. 2024)


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What is Sonic Automotive Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Sonic Automotive's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €1,626 Mil. Sonic Automotive's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €1,945 Mil. Sonic Automotive's annualized EBITDA for the quarter that ended in Mar. 2024 was €521 Mil. Sonic Automotive's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 6.86.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Sonic Automotive's Debt-to-EBITDA or its related term are showing as below:

STU:SA8A' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 5.36   Med: 7.97   Max: 20.01
Current: 6.92

During the past 13 years, the highest Debt-to-EBITDA Ratio of Sonic Automotive was 20.01. The lowest was 5.36. And the median was 7.97.

STU:SA8A's Debt-to-EBITDA is ranked worse than
86.26% of 1041 companies
in the Vehicles & Parts industry
Industry Median: 2.36 vs STU:SA8A: 6.92

Sonic Automotive Debt-to-EBITDA Historical Data

The historical data trend for Sonic Automotive's Debt-to-EBITDA 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.

* Premium members only.

Sonic Automotive Debt-to-EBITDA Chart

Sonic Automotive Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.68 20.01 5.36 8.00 6.92

Sonic Automotive Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.59 8.01 5.21 7.09 6.86

Competitive Comparison of Sonic Automotive's Debt-to-EBITDA

For the Auto & Truck Dealerships subindustry, Sonic Automotive's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Sonic Automotive's Debt-to-EBITDA falls into.



Sonic Automotive Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Sonic Automotive's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1625.749 + 1916.713) / 512.236
=6.92

Sonic Automotive's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1626.008 + 1945.432) / 520.72
=6.86

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2024) EBITDA data.


Sonic Automotive  (STU:SA8A) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Sonic Automotive Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Sonic Automotive's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Sonic Automotive (STU:SA8A) Business Description

Traded in Other Exchanges
Address
4401 Colwick Road, Charlotte, NC, USA, 28211
Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 108 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 18 EchoPark and 7 Northwest Motorsports used-vehicle stores, and 16 collision centers. The company derives revenue from new and used vehicles plus parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 83% 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 26%. 2022's revenue was $14 billion, with EchoPark's portion totaling $2.5 billion. Sonic bought RFJ Auto in December 2021, which added $3.2 billion in sales.

Sonic Automotive (STU:SA8A) Headlines

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