Home >> Money Matters (page 4)

Money Matters

Risk Management

By Jayme Bates Due to the high cost of equipment ownership, many would-be equipment owners have become equipment renters, and many of our dealers are reporting increased rental revenues versus a year ago. However, there may still be money, and risk, left on the table if you’re not currently offering some sort of rental equipment protection. There is an opportunity ...

Read More »

Exploring the Equity to Sales Ratio in the Equipment Industry

By Robin Currie Liquidity measures make up a large part of what Currie Management Consultants, Inc. calls the Report Card for the Executive. One important function of the liquidity ratios is that they are used to assist dealer principals in measuring the ease with which their enterprise can repay its short-term and long-term debt obligations. This is done by comparing ...

Read More »

Absorption Measures Performance and Sustainability

By Robin Currie One of the important measures that Currie Management Consultants, Inc. uses in all Currie Financial Composites for equipment dealers is the absorption measurement. Absorption has been referred to as a simple, but not simplistic measure of dealer performance and sustainability. It is a measurement used to indicate how much of a company’s total expenses can be covered ...

Read More »

EBITDA or ROA?

By Robin Currie The Currie Financial Model employs several critical liquidity and profitability measures for participating distribution clients. This collection of calculations makes up what we call “the Report Card for the Executive.” Included in this report are debt to equity ratio, absorption, current ratio, asset turns, return on assets, etc. What is conspicuously not included in the Currie Financial ...

Read More »

Expanding Service Department Metrics

By Matthew Hicks In our work with dealers in multiple industries we see the same anxiety regarding the management, development and execution of the service department. Especially in periods of service market growth, the anxiety is heightened because of the diverse forces that play on service performance. These forces range from recruiting, selecting, onboarding and training cycles, to billing, expense ...

Read More »

Help Stamp Out Budgeting

By Dr. Albert D. Bates For at least 30 years I’ve been extolling the virtues of budgeting in improving company performance. I have been wrong all of this time. It is not that budgeting itself is wrong. It is simply that budgeting alone does not seem to improve profitability. Budgeting must be augmented with a Managerial Profit Plan. Fully implemented, ...

Read More »

Analyzing the DiSC Results

By Robert Currie As with most surveys, you can always find the positives as well as the negatives when reviewing the results. The 2011 DiSC Reports for both industrial truck and engineered systems/storage and handling (ES/ SH) are no different. Generally speaking, the economic climate continues to show positive results, as evidenced by revenue growth in both segments. The liquidity ...

Read More »

Controlling Your Workers’ Compensation Costs

How your experience modifier affects your bottom line By Paul Praxmarer The cost of workers’ compensation insurance would rank as one of the top five highest costs on a typical profit/loss statement for a company in the material handling industry. Your workers compensation insurance premium is determined by payroll, manual rate, insurer credits and debits, and your experience modifier. Controlling ...

Read More »

The Link Between Sales and Absorption: To Sell More, Service More!

By Robert Currie and Matthew Hicks, Currie Management Consultants, Inc. Every dealer wants — or needs — to sell more. Whether from the manufacturer’s need or your need for more revenue, dealers continue to look for ways to sell more. A good place to start selling more machines is to look first at your parts and service departments. There is ...

Read More »