Computations
New Vehicles
This calculates the number of days, expressed in dollars, to deplete the current new car inventory at the current rate of sale.
Past Month Dollar Cost of Sales / 30 = Dollar Cost of Sales Per Day. Current Dollar Inventory / Dollar Cost of Sales Per Day = Dollar Day’s Supply.
This example can also be used to calculate the Days’ Supply for New Trucks – Dollars.
Example:
|
New Car Sales ($) – Month |
$3,000,000 |
|
Minus: New Car Gross Profit – Month |
$15,000 |
|
Equals: Cost of New Cars Sold |
$2,835,000 |
|
Divide by 30: |
/ 30 |
|
= Cost of Sales per day ($) |
|
|
New Car Inventory ($) Account 231, New Cars |
$6,000,000 |
|
Divided by: |
/ |
|
Cost of Sales per day ($) |
$94,500 |
|
Days Supply ($) |
$63 |