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SAH (Sonic Automotive) ROE % : 30.29% (As of Sep. 2024)


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What is Sonic Automotive ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sonic Automotive's annualized net income for the quarter that ended in Sep. 2024 was $297 Mil. Sonic Automotive's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $980 Mil. Therefore, Sonic Automotive's annualized ROE % for the quarter that ended in Sep. 2024 was 30.29%.

The historical rank and industry rank for Sonic Automotive's ROE % or its related term are showing as below:

SAH' s ROE % Range Over the Past 10 Years
Min: -5.84   Med: 12.6   Max: 36.9
Current: 21.25

During the past 13 years, Sonic Automotive's highest ROE % was 36.90%. The lowest was -5.84%. And the median was 12.60%.

SAH's ROE % is ranked better than
90.7% of 1279 companies
in the Vehicles & Parts industry
Industry Median: 6.61 vs SAH: 21.25

Sonic Automotive ROE % Historical Data

The historical data trend for Sonic Automotive's ROE % 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 ROE % Chart

Sonic Automotive Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.30 -5.84 36.90 8.98 19.94

Sonic Automotive Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % 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 31.55 17.70 18.71 17.82 30.29

Competitive Comparison of Sonic Automotive's ROE %

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

For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's ROE % distribution charts can be found below:

* The bar in red indicates where Sonic Automotive's ROE % falls into.



Sonic Automotive ROE % Calculation

Sonic Automotive's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=178.2/( (895.2+891.9)/ 2 )
=178.2/893.55
=19.94 %

Sonic Automotive's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=296.8/( (944.7+1015)/ 2 )
=296.8/979.85
=30.29 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Sonic Automotive  (NYSE:SAH) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=296.8/979.85
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(296.8 / 13966)*(13966 / 5781.2)*(5781.2 / 979.85)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.13 %*2.4158*5.9001
=ROA %*Equity Multiplier
=5.15 %*5.9001
=30.29 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=296.8/979.85
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (296.8 / 243.2) * (243.2 / 454.4) * (454.4 / 13966) * (13966 / 5781.2) * (5781.2 / 979.85)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.2204 * 0.5352 * 3.25 % * 2.4158 * 5.9001
=30.29 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


Sonic Automotive ROE % Related Terms

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


Sonic Automotive 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 25 EchoPark used-vehicle stores, 16 collision centers, and 13 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 58% of new-vehicle revenue. BMW is the largest brand at about 25%. 2023's revenue was $14.4 billion, with EchoPark's portion totaling $2.4 billion. Sonic bought RFJ Auto in December 2021, which added $3.2 billion in sales.
Executives
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