Computations
Balance Sheet
This ratio calculates how well the assets of the dealership have been employed by management.
Example:
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Account 909 - GM Reimbursements |
|
|
Plus: Account 910 - Document Handling Fees |
|
|
Equals: Adjusted Operating Profit |
|
|
Annualized: Adjusted Operating Profit / # of months X12 |
|
|
|
|
|
Total Assets |
|
|
Plus: LIFO Reserve |
|
|
Equals: Adjusted Assets |
|
|
Less: GM + Non-GM New Car Inventory |
|
|
Less: GM + Non-GM New Truck Inventory |
|
|
Less: GM + Non-GM New Medium Duty Trucks |
|
|
Less: Land |
|
|
Less: Net Buildings & Improvements (after Accumulated Depreciation) |
|
|
Plus: New Car YTD C.O.S. / # of months X 2 (60 days supply) |
|
|
Plus: New Truck YTD C.O.S. / # of months X 2 (60 days supply) |
|
|
Plus: Land & Buildings (10.75% / 15 years on Rent & Equiv.) NPV (NPV of the monthly average on Rent & Equiv. - based on a 15 year monthly term at 15% per year) |
|
|
Equals: Revised Assets |
|
|
Return on Assets (ROA): Annualized Operating Profit / Revised Assets |
|