Professor Elam

Two of the ratios we look are are inventory turnover and tines inventory turns per year.  The reciprocal of the latter, the number of  times it tuns, is the days supply. Jerry Flint  shows a good example of how important this can be to the auto industry especially  with an economic slowdown looming.  He also mentions the January barometer, as January goes so goes the year. So far judging by the stock market, the year is not shaping up very well.  Another issue he mentions is how sales are allocated between years. This relates to year end cut off by companies. 

In the past Congress has created special tax credits for the purchase of vehicles to try to move cars off the lot. It will be interesting to see what other ‘incentives’ Congress and the admin can create. The stimulus does not seem to be stimulating thus far, the stock market dropped over three hundred points yesterday.