Revenue mix, return on assets, return on equity, gross margin, interest expense, inventory turn, asset turn, absorption rate — these are the numbers that drive your dealership.
Rural Lifestyle Dealer has been sharing real-world industry benchmarks for these financial measurements in the “Measuring Up” series. The 6-part series evaluated data from the United Equipment Dealers Assn.’s (UEDA) Cost of Doing Business Study. Our goal was to provide valuable “insider” data, direct from dealers, which you can use to compare and gauge your dealership’s own performance
We hope these quick-reads have been helpful for you to gather the info you need during a busy day. Each chapter is available as a free download:
Chapter 1: Revenue Mix
Chapter 2: See How Your Expenses & Margins Stack Up
Chapter 3: Benchmarking Inventory & Asset Turns
Chapter 4: Tracking Total Profit & Net Income
Chapter 5: Achieving Excellence in ROE & ROA
Chapter 6: Depending on New Equipment Sales
Also, we analyzed these numbers further in a webinar and podcast with Rex Collins, a Principal of HBK CPAs & Consultants, who consulted on the study. Perhaps the webinar or podcast could be good training tools for your team or good content for employee meetings.
As you wrap up 2017 and prepare for what’s ahead, keep these numbers in mind. Your business is local, but nationwide trends can help you navigate where you need to head next.
Our team (myself, Michelle Drewek, Jeff Lazewski and Joanne Volkert) had some fun with this series, taking on “Moji” personas. We hope you find this extensive coverage beneficial and would love to hear your thoughts on this analysis.