Used Car Dealers in the US

Report by: Rohan Jaura | October 2020

Key Statistics

Industry Data

Year	Revenue ($m)	IVA ($m)	Establishments (Units)	Enterprises (Units)	Employment (Units)	Exports (units)	Imports (units)	Wages ($m)	Domestic Demand ($m)	Per Capita Disposable Income ($)
2003	86,693	7,262	109,727	108,994	199,296	N/A	N/A	5,441	N/A	35,445
2004	90,399	7,726	110,602	109,821	205,942	N/A	N/A	5,828	N/A	36,300
2005	92,346	8,440	111,148	110,372	207,669	N/A	N/A	6,131	N/A	36,526
2006	94,741	8,556	107,045	106,200	209,350	N/A	N/A	6,282	N/A	37,622
2007	97,809	8,961	128,032	126,881	237,302	N/A	N/A	6,516	N/A	38,120
2008	88,980	7,455	122,643	121,544	225,872	N/A	N/A	5,675	N/A	38,126
2009	78,174	6,564	116,864	115,841	203,780	N/A	N/A	5,079	N/A	37,730
2010	84,685	7,460	115,424	114,409	204,238	N/A	N/A	5,259	N/A	38,163
2011	87,592	8,186	114,510	113,405	209,348	N/A	N/A	5,646	N/A	38,780
2012	91,064	8,096	124,239	122,864	224,312	N/A	N/A	5,910	N/A	39,784
2013	93,607	8,772	125,122	123,658	231,670	N/A	N/A	6,245	N/A	39,004
2014	99,034	9,489	132,395	130,833	245,608	N/A	N/A	6,716	N/A	40,310
2015	106,583	10,430	134,803	133,197	251,771	N/A	N/A	7,232	N/A	41,670
2016	113,618	10,901	132,638	131,022	256,336	N/A	N/A	7,492	N/A	42,108
2017	118,118	10,434	132,643	131,267	261,267	N/A	N/A	7,718	N/A	43,056
2018	117,587	11,044	134,047	132,785	262,996	N/A	N/A	7,751	N/A	44,521
2019	119,502	11,257	136,792	135,542	268,397	N/A	N/A	7,904	N/A	45,594
2020	88,834	8,397	123,905	122,919	223,413	N/A	N/A	6,439	N/A	44,844
2021	88,030	8,330	123,425	122,493	221,912	N/A	N/A	6,392	N/A	45,088
2022	89,648	9,219	123,647	122,584	223,902	N/A	N/A	6,462	N/A	45,784
2023	93,614	9,571	124,974	123,632	229,681	N/A	N/A	6,652	N/A	47,111
2024	97,889	9,954	126,674	125,051	235,989	N/A	N/A	6,859	N/A	48,575
2025	100,056	10,143	127,351	125,576	238,802	N/A	N/A	6,955	N/A	50,187

Calculate at least one financial ratio in each of the five types of ratios for Carvana and for the industry.

Please show your calculations. Example: Debt-Equity Ratio = 500/2,000 = .25 To find Carvana’s latest annual report (2019), go to “Investors” at the bottom of the Carvana.com website. Then hover over “Financial Reports” (Up top) and click on “SEC Filings”. Scroll down and type “2020” for the “Year Requested” and choose “Annual Reports” from the drop-down menu for “Selected Forms”; Click search. Click on the “Annual Report” link under the search button that was generated. To find the corresponding data to do problem 4, click on “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” and scroll down to page 78 and the pages beneath. Part I gives you an idea about their business. P. 79 shows the consolidated balance sheet and selected financial statistics. *Note that even though you searched FY2020, the information provided on their financial statements are for FY2019. To find industry data, use IBISWorld. IBISWorld is available through the NIU Libraries website under “databases”. Search for “Used car dealers in the US” industry on IBISWorld or information on particular car companies. After clicking “Search”, on the left side of the page click on “Key Statistics”. Scroll down and look through the data to find the right information for comparison. It will have industry financial ratios. Financial ratio Carvana Industry Calculate at least one financial ratio in each of the five types of ratios for Carvana and for the industry. (See Exhibit 3.8 in Dess textbook for ratios). Please show your calculations. Example: Debt-Equity Ratio = 500/2,000 = .25 To find Carvana’s latest annual report (2019), go to “Investors” at the bottom of the Carvana.com website. Then hover over “Financial Reports” (Up top) and click on “SEC Filings”. Scroll down and type “2020” for the “Year Requested” and choose “Annual Reports” from the drop-down menu for “Selected Forms”; Click search. Click on the “Annual Report” link under the search button that was generated. To find the corresponding data to do problem 4, click on “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” and scroll down to page 78 and the pages beneath. Part I gives you an idea about their business. P. 79 shows the consolidated balance sheet and selected financial statistics. *Note that even though you searched FY2020, the information provided on their financial statements are for FY2019. To find industry data, use IBISWorld. IBISWorld is available through the NIU Libraries website under “databases”. Search for “Used car dealers in the US” industry on IBISWorld or information on particular car companies. After clicking “Search”, on the left side of the page click on “Key Statistics”. Scroll down and look through the data to find the right information for comparison. It will have industry financial ratios. Financial ratio Carvana Industry