Some Operational Aspects of the General Rental Industry

There is evidence that the rental industry has now matured to a point where significant management principles have evolved and with them accounting sophistication both of which are necessary for critical analysis. The purpose of this study was to establish an analytical framework with which investors, creditors, and other interested parties might determine the feasibility of establishing new businesses or expanding old ones, or for use in correcting deficiencies in operating results of existing ones. Financial analysis relies rather heavily on ratios as standards, or measures for comparisons. Ratios, in this context, can be in any form that relates one quality to another, whether they expressed in terms of percentages, fractions, or in some other form. The objectives of this study, then were: 1. To establish for the rental industry reliable rations that can be used by financial and business communities. 2. To analyze the rations established, pointing out the factors that contribute to the over-all profitability of the firm