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New Vehicle Floorplan / New Vehicle Inventory

Department:

Business Office

New Vehicle Floorplan / New Vehicle Inventory

:

Calculation

New vehicle floorplan amount divided by new vehicle inventory value.

DESCRIPTION

The ratio of the floorplan financing to the value of new vehicle inventory.

Purpose

To assess the financial health related to new vehicle inventory management.

Interpretation

Did you get it right

Optimal:
A lower ratio may suggests inefficient new car inventory management and but with lower carrying costs.
Alert:
A high ratio is very common in the industry
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06/15/2024 05:22:08 am