MQI Business
Enterprise fiscal year - answer August 1 - July 31
What's the difference between the Performance Income Statement and the Per Unit
Analysis? Which is more detailed? - answer1st has all expenses and revenues listed by
account in dollars which is more detailed
2nd groups multiple accounts together into columns listing all revenue and expenses on
a per unit basis so branches of an unequal size can be compared
What does YTD mean on the Per Unit Analysis? - answeryear to date and these
numbers start with August of the current fiscal year and goes through the current month
averaged together
What does PYTD mean on the Per Unit Analysis? - answerprior year to date and is the
same months averaged as YTD
What does MO mean on the Per Unit Analysis? - answerCurrent month
What does PYMO mean on the Per Unit Analysis? - answersame month in the prior
fiscal year
What does # of Units refer to? - answerAverage total number of units in fleet for a
particular
What is % days earned? What is the goal for this number? - answer- % of days the units
in your fleet are earning income
- goal is 95%
What is utilization? - answerthe % of cars on rent throughout the month compared to the
# of cars in your fleet
How is average days earned calculated? - answerMultiply the average total # of units by
utilization
What is C&I? - answerCustomer and Internal income
Customer income - answertime (rate) and miles income (also includes drop fees), which
is where the income from most rental goes. BDS rentals included
Internal incomes - answeroccurs when a ticket has an amount closed out to account
535 (referral commissions- i.e. Comp Days) or account 550 (advertising- i.e.
Entertainment coupons)
, What is net other? - answerincludes the difference between the revenue generated and
the expenses paid for DW, PAI/PEC, SLP, RAP, GPS, baby seats, and SXM
How is total income calculated? (IPC) - answer- C&I + Net Other
- (% days earned * # days in the month * average rate) + Net Other
How can a branch increase its IPC? - answer- sell up
- sell DW
- run tight
1% increase in utilization = ? - answerapproximate $10/car increase in IPC
What are gross costs? - answercosts directly related to owning and maintaining a
vehicle
Gross costs of ERAC - answerF: Fuel, branch level
I: Interest, different for each branch
R: Rent, area level
M: Maintenance, branch for blown engines, gas caps, and windshield stars, area for
LOFRs, tire repairs, and brakes
T: Taxes and license, group level
D: Depreciation, different for each branch
D: DR Liability Reserves,
C: Collision and comp reserves, branch level
What is the highest direct cost? - answerDepreciation 1.7%
How to calculate depreciation: - answer(cost of all vehicles/# of vehicles) * 1.7%
divide by 31 to get daily depreciation
What are liability reserves? - answerfor damages to vehicles ON RENT involving a 3rd
party
How are liability reserves calculated? - answeron a 3 year historical average due to the
claims taking a long time to settle
What are comp and collision reserves? - answerdamages to vehicle while ON RENT
How to calculate comp and collision reserves? - answer- on a 12 month rolling average
+ 10% inflationary buffer
- goal is $39
- subro bad debt + DW losses
What are the methods to control or lower a branch's comp and collision reserves? -
answer- proper underwriting, contract completeness, and thoroughly qualifying renters
Enterprise fiscal year - answer August 1 - July 31
What's the difference between the Performance Income Statement and the Per Unit
Analysis? Which is more detailed? - answer1st has all expenses and revenues listed by
account in dollars which is more detailed
2nd groups multiple accounts together into columns listing all revenue and expenses on
a per unit basis so branches of an unequal size can be compared
What does YTD mean on the Per Unit Analysis? - answeryear to date and these
numbers start with August of the current fiscal year and goes through the current month
averaged together
What does PYTD mean on the Per Unit Analysis? - answerprior year to date and is the
same months averaged as YTD
What does MO mean on the Per Unit Analysis? - answerCurrent month
What does PYMO mean on the Per Unit Analysis? - answersame month in the prior
fiscal year
What does # of Units refer to? - answerAverage total number of units in fleet for a
particular
What is % days earned? What is the goal for this number? - answer- % of days the units
in your fleet are earning income
- goal is 95%
What is utilization? - answerthe % of cars on rent throughout the month compared to the
# of cars in your fleet
How is average days earned calculated? - answerMultiply the average total # of units by
utilization
What is C&I? - answerCustomer and Internal income
Customer income - answertime (rate) and miles income (also includes drop fees), which
is where the income from most rental goes. BDS rentals included
Internal incomes - answeroccurs when a ticket has an amount closed out to account
535 (referral commissions- i.e. Comp Days) or account 550 (advertising- i.e.
Entertainment coupons)
, What is net other? - answerincludes the difference between the revenue generated and
the expenses paid for DW, PAI/PEC, SLP, RAP, GPS, baby seats, and SXM
How is total income calculated? (IPC) - answer- C&I + Net Other
- (% days earned * # days in the month * average rate) + Net Other
How can a branch increase its IPC? - answer- sell up
- sell DW
- run tight
1% increase in utilization = ? - answerapproximate $10/car increase in IPC
What are gross costs? - answercosts directly related to owning and maintaining a
vehicle
Gross costs of ERAC - answerF: Fuel, branch level
I: Interest, different for each branch
R: Rent, area level
M: Maintenance, branch for blown engines, gas caps, and windshield stars, area for
LOFRs, tire repairs, and brakes
T: Taxes and license, group level
D: Depreciation, different for each branch
D: DR Liability Reserves,
C: Collision and comp reserves, branch level
What is the highest direct cost? - answerDepreciation 1.7%
How to calculate depreciation: - answer(cost of all vehicles/# of vehicles) * 1.7%
divide by 31 to get daily depreciation
What are liability reserves? - answerfor damages to vehicles ON RENT involving a 3rd
party
How are liability reserves calculated? - answeron a 3 year historical average due to the
claims taking a long time to settle
What are comp and collision reserves? - answerdamages to vehicle while ON RENT
How to calculate comp and collision reserves? - answer- on a 12 month rolling average
+ 10% inflationary buffer
- goal is $39
- subro bad debt + DW losses
What are the methods to control or lower a branch's comp and collision reserves? -
answer- proper underwriting, contract completeness, and thoroughly qualifying renters
