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An immediate way this could be improved upon is to temporarily stop buying more stock until your current stock has been sold. Analysis of the purchasing patterns of customers could be carried out to identify ways to reduce the amount of stock. Through identifying the customer’s requirements stock could be minimised by selling obsolete stock at a discounted amount and only having vehicles on the forecourt that customer’s desire. Obsolete stock could be auctioned with a reserve price being set to minimise potential loss to the business.
The credit ratio identifies it is taking on average 66 days to pay creditors...
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