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Automotive industry uses KPIs or Key performance indicators to track the industry’s performance. It helps them make better business decisions and are very important for the success of their industry. KPIs helps industries achieve their goals and helps them gain high operational efficiency.
2. Gross Profit
EBITDA or Earnings before interest, tax, depreciation and amortization refers to a measure of calculating the working efficiency of an industry. This is also one of the important KPIs to gauge for an automotive industry.
It measures the earnings of an industry before taking into consideration the other aspects. All the other aspects like tax, interest and depreciation are not counted when it comes to the total earning in case of EBITDA.
Automotive industries tracks EBITDA to keep track of the earnings that it makes for maintaining their overall productivity.
4. Inventory management
5. Accounts payable and Accounts receivable
Accounts payable or, A/P refers to amount of money that the industry owes to the creditors in the business. It is very important for the automotive industry to keep track of this KPI as it helps them maintain their financial position effectively.
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