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With the market growing by 2.2% in 2013, profitability for the average dealer in Australia fell by 17%. That’s amazing to think: in a growing market, the profit of the average dealer was down.
Dealer profitability as measured by net profit as a percentage of sales (NP%S) was 2.6% for the average Australian dealer in January 2015. It was a good start to the 2015 year with a better result than January 2014’s 2.3%.
December was the most profitable month in the last quarter of the calendar year for the average Australian dealer with NP%S at 2.9%. Comparing year-on-year, average dealer profitability improved marginally in 2014 with a calendar year-to-date result of 1.9%.
November saw dealer profitability fall sharply on prior month performance for the average dealer in Australia with an NP%S of 1.3% across the industry.
Date: April 20 - 23, 2015 Learn the financial dynamics of a dealership, key drivers of profitability and the relationship between departments.
Accounting theory in the context of dealership financials and department transactions.