To build a sustainable competitive advantage, Carvana must strengthen internal controls and operational efficiency while continuing to
Question:
To build a sustainable competitive advantage, Carvana must strengthen internal controls and operational efficiency while continuing to invest in technology and enhance the customer journey. The following strategy aims to achieve this balance over the next 4 years through targeted initiatives and close management oversight:
Initiative 1 (Y1-Y2): Implement a revised accounting and title transfer process with audits and controls at key checkpoints. Estimated cost savings of $5M.
Initiative 2 (Y2-Y3): Launch a Operational Excellence program including Lean Six Sigma projects, process mapping, and employee empowerment. Aim for 10-15% improvement in key metrics (vehicle reconditioning time, delivery logistics, etc.). Estimated cost savings of $25-30M
Initiative 3 (Y3-Y4): Continue investing 10-15% of revenues in new technologies like AI pricing optimization, AR for remote walkarounds, and automated inspections. Revenue growth of 25-30% Please create an accurate and factual cash flow sheet that represents this data in relation to Carvana's current financials.
Please create an accurate and factual cash flow sheet that represents these strategies plugged into Carvana's current financials from ttm-2024
.
name TotalRevenue OperatingRevenue CostOfRevenue GrossProfit OperatingExpense Selling GeneralAndAdministration GeneralAndAdministrativeExpense SalariesAndWages RentAnd LandingFees OtherGandA Selling And MarketingExpense OperatingIncome NetNonOperating InterestincomeExpense InterestExpenseNonOperating OtherIncomeExpense Special incomeCharges ImpairmentOfCapitalAssets Other NonOperatingIncomeExpenses Pretaxincome TaxProvision NetIncomeCommonStockholders NetIncome NetIncomeIncluding Noncontrollinginterests NetIncomeContinuousOperations MinorityInterests PreferredStockDividends OtherunderPreferredStock Dividend DilutedNIAvailtoComStockholders BasicEPS DilutedEPS BasicAverageShares DilutedAverageShares TotalOperatingIncomeAsReported RentExpenseSupplemental TotalExpenses NetIncomeFromContinuingAndDiscontinued Operation Normalizedincome InterestExpense Netinterestincome EBIT EBITDA ReconciledCostOfRevenue ReconciledDepreciation NetIncomeFromContinuing OperationNetMinorityInterest TotalUnusualitemsExcludingGoodwill TotalUnusualitems NormalizedEBITDA TaxRateForCalcs TaxEffectOfUnusualltems 12/31/2017 12/31/2016 12/31/2015 12/31/2014 858,870,000 365,148,000 130,392,000 41,679,000 825,429,000 352,152,000 128,715,000 41,645,000 790,779,000 345,951,000 129,046,000 42,103,000 68,091,000 19,197,000 1,346,000 -424,000 12/31/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 13,604,000,000 13,604,000,000 12,814,000,000 5,586,565,000 3,939,896,000 1,955,467,000 12,863,000,000 12,863,000,000 11,771,000,000 5,185,831,000 3,688,187,000 1,858,629,000 12,358,000,000 12,358,000,000 10,885,000,000 4,792,800,000 3,433,482,000 1,758,758,000 1,246,000,000 1,246,000,000 1,929,000,000 793,765,000 506,414,000 196,709,000 2,736,000,000 2,736,000,000 2,033,000,000 1,126,161,000 786,717,000 425,258,000 223,400,000 108,676,000 36,678,000 14,684,000 2,736,000,000 2,736,000,000 2,033,000,000 1,126,161,000 786,717,000 425,258,000 223,400,000 108,676,000 36,678,000 14,684,000 2,246,000,000 2,246,000,000 1,554,000,000 839,728,000 582,697,000 314,029,000 167,703,000 81,688,000 25,899,000 10,606,000 943,000,000 943,000,000 667,000,000 338,321,000 244,351,000 139,532,000 76,715,000 37,220,000 11,657,000 4,413,000 93,000,000 93,000,000 70,000,000 36,448,000 21,251,000 12,097,000 6,222,000 1,768,000 554,000 526,000 1,210,000,000 1,210,000,000 817,000,000 464,959,000 317,095,000 162,400,000 84,766,000 42,700,000 13,688,000 5,667,000 490,000,000 490,000,000 479,000,000 286,433,000 204,020,000 111,229,000 55,697,000 26,988,000 10,779,000 4,078,000 -1,490,000,000 -1,490,000,000 -104,000,000 -332,396,000 -280,303,000 -228,549,000 -155,309,000 -89,479,000 -35,332,000 -15,108,000 -486,000,000 -486,000,000 -176,000,000 -131,528,000 -80,606,000 -25,018,000 -7,659,000 -3,587,000 -1,412,000 -108,000 486,000,000 486,000,000 176,000,000 131,528,000 80,606,000 25,018,000 7,659,000 3,587,000 1,412,000 108,000 -917,000,000 -917,000,000 -6,000,000 1,447,000 -3,730,000 -1,178,000 -1,348,000 -46,000 -36,000 -22,000 -847,000,000 -847,000,000 -1,348,000 -46,000 -36,000 -22,000 847,000,000 847,000,000 -70,000,000 -70,000,000 -6,000,000 1,447,000 -3,730,000 -1,178,000 -1,348,000 -46,000 -36,000 -22,000 -2,893,000,000 -2,893,000,000 -286,000,000 -462,477,000 -364,639,000 -254,745,000 -164,316,000 -93,112,000 -36,780,000 -15,238,000 1,000,000 1,000,000 1,000,000 -255,000 -1,587,000,000 -1,587,000,000 -135,000,000 -171,140,000 -114,659,000 -67,340,000 -64,491,000 -113,695,000 -4,009,000 -15,238,000 -1,587,000,000 -1,587,000,000 -135,000,000 -171,140,000 -114,659,000 -61,754,000 -62,841,000 -93,112,000 -4,009,000 -15,238,000 -2,894,000,000 -2,894,000,000 -287,000,000 -462,222,000 -364,639,000 -254,745,000 -164,316,000 -93,112,000 -36,780,000 -15,238,000 -2,894,000,000 -2,894,000,000 -287,000,000 -462,222,000 -364,639,000 -254,745,000 -164,316,000 -93,112,000 -36,780,000 -15,238,000 1,307,000,000 1,307,000,000 152,000,000 291,082,000 249,980,000 192,991,000 101,475,000 32,771,000 413,000 20,583,000 -32,771,000 1,237,000 -103,763,000 -64,491,000 -113,695,000 -1.31 -6.207 -1.016 -6.207 -0.267 -1.016 15,241,000 15,000,000 15,000,000 15,000,000 15,241,000 15,000,000 15,000,000 15,000,000 -155,309,000 -89,479,000 -35,332,000 -15,108,000 6,222,000 1,768,000 554,000 526,000 15,094,000,000 15,094,000,000 12,918,000,000 5,918,961,000 4,220,199,000 2,184,016,000 1,014,179,000 454,627,000 165,724,000 56,787,000 -1,587,000,000 -1,587,000,000 -135,000,000 -171,140,000 -114,659,000 -61,754,000 -62,841,000 -93,112,000 -4,009,000 -15,238,000 -740,000,000 -1,078,800,000 -135,000,000 -171,140,000 -114,659,000 -61,754,000 -62,841,000 -93,112,000 -4,009,000 -15,238,000 486,000,000 486,000,000 176,000,000 131,528,000 80,606,000 25,018,000 7,659,000 3,587,000 1,412,000 108,000 -486,000,000 -486,000,000 -176,000,000 -131,528,000 -80,606,000 -25,018,000 -7,659,000 -3,587,000 -1,412,000 -108,000 -2,407,000,000 -2,407,000,000 -110,000,000 -330,949,000 -284,033,000 -229,727,000 -156,657,000 -89,525,000 -35,368,000 -15,130,000 -2,146,000,000 4,206,000 1,380,000 -67,340,000 -2.24 -2.24 -4,009,000 -15,238,000 -0.267 -1.31 93,000,000 93,000,000 70,000,000 36,448,000 1,251,000 12,097,000 12,358,000,000 12,358,000,000 10,885,000,000 4,792,800,000 3,433,482,000 1,758,758,000 790,779,000 345,951,000 129,046,000 42,103,000 261,000,000 261,000,000 105,000,000 73,791,000 41,265,000 23,539,000 11,568,000 4,658,000 2,800,000 1,705,000 -1,587,000,000 -1,587,000,000 -135,000,000 -171,140,000 -114,659,000 -61,754,000 -62,841,000 -93,112,000 -4,009,000 -15,238,000 -1,348,000 -46,000 -36,000 -22,000 -1,348,000 -46,000 -847,000,000 -847,000,000 -36,000 -22,000 -847,000,000 -847,000,000 -1,299,000,000 -1,299,000,000 -5,000,000 -257,158,000 -242,768,000 -206,188,000 -145,089,000 -84,867,000 -32,568,000 -13,425,000 0.27 0 ttm -1,587,000,000 -1,587,000,000 -15.74 -15.74 100,828,000 100,828,000 0 0 0.4 -338,800,000 0 0 0.001 0 0 -135,000,000 -171,140,000 -114,659,000 -1.63 -2.63 -2.45 -1.63 -2.63 -2.45 82,805,000 64,981,000 46,847,000 30,043,000 82,805,000 64,981,000 46,847,000 30,043,000 0 0 0 0 0 0 0 0 0 0 0 0 0 name TotalRevenue OperatingRevenue CostOfRevenue GrossProfit OperatingExpense Selling GeneralAndAdministration GeneralAndAdministrativeExpense SalariesAndWages RentAnd LandingFees OtherGandA Selling And MarketingExpense OperatingIncome NetNonOperating InterestincomeExpense InterestExpenseNonOperating OtherIncomeExpense Special incomeCharges ImpairmentOfCapitalAssets Other NonOperatingIncomeExpenses Pretaxincome TaxProvision NetIncomeCommonStockholders NetIncome NetIncomeIncluding Noncontrollinginterests NetIncomeContinuousOperations MinorityInterests PreferredStockDividends OtherunderPreferredStock Dividend DilutedNIAvailtoComStockholders BasicEPS DilutedEPS BasicAverageShares DilutedAverageShares TotalOperatingIncomeAsReported RentExpenseSupplemental TotalExpenses NetIncomeFromContinuingAndDiscontinued Operation Normalizedincome InterestExpense Netinterestincome EBIT EBITDA ReconciledCostOfRevenue ReconciledDepreciation NetIncomeFromContinuing OperationNetMinorityInterest TotalUnusualitemsExcludingGoodwill TotalUnusualitems NormalizedEBITDA TaxRateForCalcs TaxEffectOfUnusualltems 12/31/2017 12/31/2016 12/31/2015 12/31/2014 858,870,000 365,148,000 130,392,000 41,679,000 825,429,000 352,152,000 128,715,000 41,645,000 790,779,000 345,951,000 129,046,000 42,103,000 68,091,000 19,197,000 1,346,000 -424,000 12/31/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 13,604,000,000 13,604,000,000 12,814,000,000 5,586,565,000 3,939,896,000 1,955,467,000 12,863,000,000 12,863,000,000 11,771,000,000 5,185,831,000 3,688,187,000 1,858,629,000 12,358,000,000 12,358,000,000 10,885,000,000 4,792,800,000 3,433,482,000 1,758,758,000 1,246,000,000 1,246,000,000 1,929,000,000 793,765,000 506,414,000 196,709,000 2,736,000,000 2,736,000,000 2,033,000,000 1,126,161,000 786,717,000 425,258,000 223,400,000 108,676,000 36,678,000 14,684,000 2,736,000,000 2,736,000,000 2,033,000,000 1,126,161,000 786,717,000 425,258,000 223,400,000 108,676,000 36,678,000 14,684,000 2,246,000,000 2,246,000,000 1,554,000,000 839,728,000 582,697,000 314,029,000 167,703,000 81,688,000 25,899,000 10,606,000 943,000,000 943,000,000 667,000,000 338,321,000 244,351,000 139,532,000 76,715,000 37,220,000 11,657,000 4,413,000 93,000,000 93,000,000 70,000,000 36,448,000 21,251,000 12,097,000 6,222,000 1,768,000 554,000 526,000 1,210,000,000 1,210,000,000 817,000,000 464,959,000 317,095,000 162,400,000 84,766,000 42,700,000 13,688,000 5,667,000 490,000,000 490,000,000 479,000,000 286,433,000 204,020,000 111,229,000 55,697,000 26,988,000 10,779,000 4,078,000 -1,490,000,000 -1,490,000,000 -104,000,000 -332,396,000 -280,303,000 -228,549,000 -155,309,000 -89,479,000 -35,332,000 -15,108,000 -486,000,000 -486,000,000 -176,000,000 -131,528,000 -80,606,000 -25,018,000 -7,659,000 -3,587,000 -1,412,000 -108,000 486,000,000 486,000,000 176,000,000 131,528,000 80,606,000 25,018,000 7,659,000 3,587,000 1,412,000 108,000 -917,000,000 -917,000,000 -6,000,000 1,447,000 -3,730,000 -1,178,000 -1,348,000 -46,000 -36,000 -22,000 -847,000,000 -847,000,000 -1,348,000 -46,000 -36,000 -22,000 847,000,000 847,000,000 -70,000,000 -70,000,000 -6,000,000 1,447,000 -3,730,000 -1,178,000 -1,348,000 -46,000 -36,000 -22,000 -2,893,000,000 -2,893,000,000 -286,000,000 -462,477,000 -364,639,000 -254,745,000 -164,316,000 -93,112,000 -36,780,000 -15,238,000 1,000,000 1,000,000 1,000,000 -255,000 -1,587,000,000 -1,587,000,000 -135,000,000 -171,140,000 -114,659,000 -67,340,000 -64,491,000 -113,695,000 -4,009,000 -15,238,000 -1,587,000,000 -1,587,000,000 -135,000,000 -171,140,000 -114,659,000 -61,754,000 -62,841,000 -93,112,000 -4,009,000 -15,238,000 -2,894,000,000 -2,894,000,000 -287,000,000 -462,222,000 -364,639,000 -254,745,000 -164,316,000 -93,112,000 -36,780,000 -15,238,000 -2,894,000,000 -2,894,000,000 -287,000,000 -462,222,000 -364,639,000 -254,745,000 -164,316,000 -93,112,000 -36,780,000 -15,238,000 1,307,000,000 1,307,000,000 152,000,000 291,082,000 249,980,000 192,991,000 101,475,000 32,771,000 413,000 20,583,000 -32,771,000 1,237,000 -103,763,000 -64,491,000 -113,695,000 -1.31 -6.207 -1.016 -6.207 -0.267 -1.016 15,241,000 15,000,000 15,000,000 15,000,000 15,241,000 15,000,000 15,000,000 15,000,000 -155,309,000 -89,479,000 -35,332,000 -15,108,000 6,222,000 1,768,000 554,000 526,000 15,094,000,000 15,094,000,000 12,918,000,000 5,918,961,000 4,220,199,000 2,184,016,000 1,014,179,000 454,627,000 165,724,000 56,787,000 -1,587,000,000 -1,587,000,000 -135,000,000 -171,140,000 -114,659,000 -61,754,000 -62,841,000 -93,112,000 -4,009,000 -15,238,000 -740,000,000 -1,078,800,000 -135,000,000 -171,140,000 -114,659,000 -61,754,000 -62,841,000 -93,112,000 -4,009,000 -15,238,000 486,000,000 486,000,000 176,000,000 131,528,000 80,606,000 25,018,000 7,659,000 3,587,000 1,412,000 108,000 -486,000,000 -486,000,000 -176,000,000 -131,528,000 -80,606,000 -25,018,000 -7,659,000 -3,587,000 -1,412,000 -108,000 -2,407,000,000 -2,407,000,000 -110,000,000 -330,949,000 -284,033,000 -229,727,000 -156,657,000 -89,525,000 -35,368,000 -15,130,000 -2,146,000,000 4,206,000 1,380,000 -67,340,000 -2.24 -2.24 -4,009,000 -15,238,000 -0.267 -1.31 93,000,000 93,000,000 70,000,000 36,448,000 1,251,000 12,097,000 12,358,000,000 12,358,000,000 10,885,000,000 4,792,800,000 3,433,482,000 1,758,758,000 790,779,000 345,951,000 129,046,000 42,103,000 261,000,000 261,000,000 105,000,000 73,791,000 41,265,000 23,539,000 11,568,000 4,658,000 2,800,000 1,705,000 -1,587,000,000 -1,587,000,000 -135,000,000 -171,140,000 -114,659,000 -61,754,000 -62,841,000 -93,112,000 -4,009,000 -15,238,000 -1,348,000 -46,000 -36,000 -22,000 -1,348,000 -46,000 -847,000,000 -847,000,000 -36,000 -22,000 -847,000,000 -847,000,000 -1,299,000,000 -1,299,000,000 -5,000,000 -257,158,000 -242,768,000 -206,188,000 -145,089,000 -84,867,000 -32,568,000 -13,425,000 0.27 0 ttm -1,587,000,000 -1,587,000,000 -15.74 -15.74 100,828,000 100,828,000 0 0 0.4 -338,800,000 0 0 0.001 0 0 -135,000,000 -171,140,000 -114,659,000 -1.63 -2.63 -2.45 -1.63 -2.63 -2.45 82,805,000 64,981,000 46,847,000 30,043,000 82,805,000 64,981,000 46,847,000 30,043,000 0 0 0 0 0 0 0 0 0 0 0 0 0
Expert Answer:
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Students also viewed these general management questions
-
Subject : Strategic Management in a Global Environment Safaricom: Innovative Telecom Solutions to Empower Kenyans As the largest mobile provider in Kenya, Safaricom has touched the lives of Kenyans...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Calculate the 90% confidence interval for the difference (mu1-mu2) of two population means given the following sampling results. Population 1: sample size = 19, sample mean = 20.52, sample standard...
-
What is the maximum kinetic energy of an electron emitted in the decay of a free neutron?
-
Think of two important decisions you have recently madem one you made individually and one you made as a member of a group. Describe each decision. For each decision, answer these questions: 1. Was...
-
What tasks must be performed if a party files an appeal?
-
Major corporations with overseas subcontractors (such as IKEA in Bangladesh, Unilever in India, and Nike in China) have been criticized, often with substantial negative publicity, when children as...
-
Your Firm is offered a 2% discount if they pay their bills within 10 days. If no discount is taken, the bill is due in full in 30 days. What is your Firm's nominal annual cost of trade credit?
-
Information on Kwon Manufacturings activities for its first month of operations follows: Purchased $100,400 of raw materials on credit. Materials requisitions show the following materials used for...
-
Black paid $300,000 for 20,000 (25%) of the outstanding shared of White Limited on January 1, Year-5. During Year-5, White paid dividends of $50,000 and reported other comprehensive income (OCI) of...
-
Prep Inc. follows IFRS and has a December 31st year end. On July 5, 20x9, they purchased the rights for web-hosting software from a software developer at a cost of $26,000. The software was...
-
Using the fact pattern from assignment one (which is attached below), draft ten interrogatories (only four may come from the standard interrogatories under the South Carolina Rules of Civil...
-
What are some of the social effects of violence in the media? Has research proven a conclusive link between violence in the media and violence in society?
-
Do you think Quality Improvement is an effective means to providing quality care? Are there any quality tools that wiill help you on your job. Please explain. What other thoughts do you have about...
-
f your organization wants to be in compliance with the Psychological Health and Safety in the Workplace national standard, what kind of training should the organization provide to employees? a ....
-
Development Project Name : Customer Relationship Management System (CRM) for Wal-Mart How would you go about determining how many use-case models you will need to create to specify the functional...
-
The Pletcher Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using...
-
In a contract drawn up by Booke Company, it agreed to sell and Yermack Contracting Company agreed to buy wood shingles at $6.50. After the shingles were delivered and used, Booke Company billed...
-
On April 8, Burchette received a telephone call from Bleluck, a truck dealer, who told Burchette that a new model truck in which Burchette was interested would arrive in one week. Although Bleluck...
-
Campbell loaned Perry Dixon $7,000, which was secured by a possessory security interest in stock owned by Perry. The stock had a market value of $4,000. In addition, Campbell insisted that Perry...
-
Are revisions of periodic depreciation made to previous periods? Explain.
-
Why is depreciation an allocation concept rather than a valuation concept?
-
What is the formula for calculating annual depreciation under the straight-line method?
Study smarter with the SolutionInn App