Financial metrics in the car-rental industry?
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!