1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
Sonic Automotive's 1-Year ROIIC % for the quarter that ended in Sep. 2024 was -12.51%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Sonic Automotive's 1-Year ROIIC % or its related term are showing as below:
SAH's 1-Year ROIIC % is ranked worse than 66.51% of 1272
companies
in the Vehicles & Parts industry
Industry Median: 1.275
vs SAH: -12.51
Sonic Automotive 1-Year ROIIC % Historical Data
The historical data trend for Sonic Automotive's 1-Year ROIIC % 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 1-Year ROIIC %
For the Auto & Truck Dealerships subindustry, Sonic Automotive's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % 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 1-Year ROIIC % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's 1-Year ROIIC % falls into.
Sonic Automotive 1-Year ROIIC % Calculation
Sonic Automotive's 1-Year ROIIC % for the quarter that ended in Sep. 2024 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( 381.783 (Sep. 2024) - 468.7078 (Sep. 2023) )
/
( 5191.5 (Sep. 2024) - 4496.4 (Sep. 2023) )
=
-86.9248
/
695.1
=
-12.51%***
* 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.
** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Sonic Automotive (NYSE:SAH) 1-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Sonic Automotive 1-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Sonic Automotive's 1-Year ROIIC % 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 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.
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