What is Sonic Automotive Return-on-Tangible-Equity?
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sonic Automotive's annualized net income for the quarter that ended in Mar. 2025 was $282 Mil. Sonic Automotive's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $288 Mil. Therefore, Sonic Automotive's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 97.97%.
The historical rank and industry rank for Sonic Automotive's Return-on-Tangible-Equity or its related term are showing as below:
SAH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.92 Med: 52.6 Max: 97.42
Current: 91.69
During the past 13 years, Sonic Automotive's highest Return-on-Tangible-Equity was 97.42%. The lowest was -10.92%. And the median was 52.60%.
SAH's Return-on-Tangible-Equity is ranked better than 96.05% of 1265
companies
in the Vehicles & Parts industry
Industry Median: 7.7
vs SAH: 91.69
Sonic Automotive Return-on-Tangible-Equity Historical Data
The historical data trend for Sonic Automotive's Return-on-Tangible-Equity 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.
Competitive Comparison of Sonic Automotive's Return-on-Tangible-Equity
For the Auto & Truck Dealerships subindustry, Sonic Automotive's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Sonic Automotive (NYSE:SAH) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sonic Automotive Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Sonic Automotive's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
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 used-vehicle stores, 16 collision centers, and 15 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 59% of new-vehicle revenue. BMW is the largest brand at about 25%. 2024's revenue was $14.2 billion, with Texas and California comprising 51% of the total. EchoPark's portion was $2.1 billion.
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