Computations
New Vehicles
This calculates the number of days, expressed in units, to deplete the current new car inventory at the current rate of sale.
Past Month Unit Sales / 30 = Unit Sales Per Day. Current Unit Inventory / Unit Sales Per Day = Unit Day’s Supply.
This example can also be used to calculate the Days’ Supply for New Trucks – Units.
Example:
|
New Car Sales (Units) - Month |
430 |
|
Divide by 30: |
/ 30 |
|
Unit Sales per day |
|
|
New Car Inventory (Units) Account 231, New Cars |
840 |
|
Divided by: |
/ |
|
Unit Sales Per Day |
14 |
|
Unit Days Supply |
60 |