Sonic Automotive (FRA:SA8A) Debt-to-Equity : 4.29 (As of Mar. 2024)

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What is Sonic Automotive Debt-to-Equity?

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 Total Stockholders Equity for the quarter that ended in Mar. 2024 was €832 Mil. Sonic Automotive's debt to equity for the quarter that ended in Mar. 2024 was 4.29.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

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

FRA:SA8A' s Debt-to-Equity Range Over the Past 10 Years
Min: 1.99 Med: 3.13 Max: 4.33
Current: 4.29

During the past 13 years, the highest Debt-to-Equity Ratio of Sonic Automotive was 4.33. The lowest was 1.99. And the median was 3.13.

FRA:SA8A's Debt-to-Equity is ranked worse than
97.36% of 1173 companies
in the Vehicles & Parts industry
Industry Median: 0.48 vs FRA:SA8A: 4.29

Sonic Automotive Debt-to-Equity Historical Data

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

* Premium members only.

Sonic Automotive Debt-to-Equity Chart

Sonic Automotive Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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2.79

3.01

3.08

3.90

4.33

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-Equity	Get a 7-Day Free Trial															4.29	4.12	4.16	4.33	4.29

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

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

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

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

Sonic Automotive Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

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

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(1625.749	+	1916.713)	/	817.872
	=	4.33

Sonic Automotive's Debt to Equity Ratio for the quarter that ended in Mar. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(1626.008	+	1945.432)	/	832.048
	=	4.29

Sonic Automotive (FRA:SA8A) Debt-to-Equity Explanation

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

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Sonic Automotive Debt-to-Equity Related Terms

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Sonic Automotive (FRA:SA8A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Sonic Automotive Inc (FRA:SA8A) » Definitions » Debt-to-Equity

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Traded in Other Exchanges

SAH:USA

Address

4401 Colwick Road, Charlotte, NC, USA, 28211

Website

https://www.sonicautomotive.com

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.

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