$Sonic Automotive (SAH.US)$It is an American company listed ...

The main business is 80% of the franchise and 20% of the used car trading network, a single American market.

Over the past five years, the gross profit margin has basically been about 15%, while the return on net assets has risen from 12.3% to 36.9%, with great fluctuations in the middle.

Revenue has increased for four years over the past five years, apart from a 6.6% decline in 2020, and revenue in 2021 is 26.9% higher than in 2019, making up for the lack in 2020. Operating profit fell in 2017, 2018 and 2020, but skyrocketed in 2019 and 2021, with an average growth rate of 17.5 per cent over the past five years. The net profit curve is similar, entering a loss range in 2020.

In the first two quarters of 2022, revenue increased by 18%, operating profit by 22%, and net profit by 14.3%.

The income statement shows that 270 million of the impairment of capital assets in 2020 resulted in a loss of net profit for the year, which is another performance-bathing trick. In 2021, interest expenses account for 11.7% of operating profit, with a moderate burden.

Operating expenses increased greatly in the first two quarters of 2022, and interest expenses also increased a lot.

Over the past five years, the asset-liability ratio has dropped slightly from 79% to 76%, cash has increased rapidly, receivables have changed little, and inventories have declined. Long-term borrowing is 1.462 billion, accounting for 125% of net assets, accounting for a relatively high percentage. But considering that there are 860 million inventory stocks, the actual proportion is not so high.

Over the past five years, the net amount of operation is lower than the net amount of investment, and there is no shareholder surplus.

The current price-to-earnings ratio is 5.9and the price-to-earnings ratio is TTM 5.3.You can choose carefully (⭐️).