Circulation of Funds Employed (C.O.F.E.)
Annualised Company Turnover ÷ Funds Employed
Baseline:
6 times per annum (if property is on the balance sheet)12 times per annum (if property is not on the balance sheet) Description:This KPI tells you the number of times that you use, or circulate the money that is invested within your dealership in 1 year. C.O.F.E. as it is more commonly known is usually found on the company summary page of your reports and is really a measure of how good your management team are at utilising the funds that are entrusted to them. It really is true to say that making profit is one thing, but keeping that profit requires a totally different skill. If you are familiar with stock turn calculations, then this KPI works in exactly the same way except that it is measuring the use of the dealership's money as opposed to the stock in a particular department.
Example:A) Company Turnover = R14,523,661 B) Funds Employed = R2,420,610 C) C.O.F.E = 6 times p/a (A ÷ B)
Discussion:This statistic tells you how many times you use your money in 1 year and the more times you use your money, the less you need to invest and the more profit you will make as a result.
Related Terminology: |