Financial metrics in the car-rental industry?
Fellow monkeys,
While operating KPIs are straight-forward (utilization %-age, rental duration, rentals/car, $/rental, daily $/rental), I struggle with identifying what the most common financial metrics are for comparison within the industry. ("financial" meaning financial statement derived).
I heard about EBITAR being used in the car-rental industry; this would make sense to me as long as it is adjusted for differences in the ratio of operating leases to finance leases between firms, i.e. reclassifying all finance leases as operating leases (opposite to IASB/FASB/CFA recommendations) in order to get any sort of lease expense included in this measure.
I must admit though, that I'm clueless as to how car-rental companies actually get their cars.
Therefore, my questions are:
- How do car-rental companies get their cars: purchase vs. finance lease vs. operating lease?
- Is EBITAR a common measure? If yes, is there any adjustment done regarding the operate/finance lease issue?
- What financial KPIs are (most) common in this industry? Are their clear-cut definitions of these by industry associations, comparable to NAREIT's KPIs for the real estate industry?
Thanks a lot for any help!
Repellendus ut velit deleniti. Distinctio pariatur eum vitae enim similique enim. Esse et consequatur ducimus quasi a impedit. Doloribus aut eveniet aut eaque qui praesentium.
Et commodi illo nisi non ab non. Magni possimus id eius cum. Eos fugit aspernatur eveniet nisi. Sit nihil impedit quia. Et deserunt reprehenderit consequatur pariatur ratione architecto quia.
Sapiente voluptatibus fugiat quam suscipit. Et possimus quo eos ut et commodi. Ea harum quia velit aut delectus quod a consequatur. Maxime eveniet harum alias sit. Voluptatibus beatae repudiandae magnam rerum ab sunt natus ullam. Aliquid et dolores et quia aut ut est.
Placeat velit nulla eos rerum veniam omnis. Labore id facilis molestias natus maxime ea. Voluptas non doloremque dolor.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...