ROI Analysis
Understanding return on investment metrics for vehicle assets.
Return on Investment (ROI) is the primary measure of whether a vehicle is financially worthwhile. The Vehicle Asset Management module provides detailed ROI data for every registered vehicle, helping you make data-driven decisions about your fleet.
What Is ROI in Fleet Context?
ROI measures how much return (profit) a vehicle has generated compared to its purchase cost. A positive ROI means the vehicle has earned more than it has cost. A negative ROI means the vehicle is operating at a loss.
Simple formula:
ROI % = (Total Earnings / Purchase Cost) x 100For example, if a vehicle was purchased for AED 100,000 and has generated AED 30,000 in net earnings, its ROI is 30%.
Accessing ROI Data
There are two ways to view ROI metrics for a vehicle:
From the List View (Quick Access)
Click the expand arrow on any vehicle row in the Vehicle Asset Management list. This opens an expanded section directly below the row with a summary of all financial data.
From the Detail Page (Full View)
Click on any vehicle row to open its full detail page. The detail page provides all the same metrics with additional context and full purchase/depreciation information.
Understanding the Sections
The expanded row and detail page are organized into five sections, each providing a different financial perspective.
Growth Section
The Growth section shows revenue performance and overall return metrics.
| Metric | Description |
|---|---|
| Total Revenue | All revenue generated by this vehicle across its lifetime |
| Net Profit (Lifetime) | Total revenue minus all costs (expenses, fines, depreciation, commissions) over the vehicle's entire lifetime |
| Net Profit (Monthly) | Average monthly profit, calculated as lifetime net profit divided by the number of months in service |
| Total ROI Earnings | The portion of earnings attributed to the ROI calculation |
| ROI Percentage | The return on investment as a percentage of the purchase cost |
Monthly net profit is useful for comparing vehicles of different ages. A vehicle that has been in service for 3 years is not directly comparable to one in service for 6 months using lifetime figures alone.
Cost Section
The Cost section breaks down all expenses associated with the vehicle.
| Metric | Description |
|---|---|
| Total Expenses | All expenses charged to this vehicle (fuel, maintenance, insurance, etc.) |
| Monthly Expenses | Average monthly expense amount |
| Total Fines | All fines associated with drivers of this vehicle |
Keeping expenses low relative to revenue is key to maintaining a healthy ROI. The monthly expenses figure helps you identify vehicles with unusually high running costs.
Driver Stats
The Driver Stats section shows a per-driver breakdown for all drivers who have operated this vehicle. This helps you identify which driver-vehicle combinations are most profitable.
| Metric | Description |
|---|---|
| Driver Name | The name of the driver |
| Label | The driver's role or assignment label |
| Revenue | Total revenue generated by this driver on this vehicle |
| Commission | Commission earned by this driver (based on the vehicle's commission rate) |
| Expense | Expenses incurred by this driver while operating this vehicle |
| Fine | Fines associated with this driver on this vehicle |
If multiple drivers have operated the same vehicle, the driver stats section lets you compare their performance side by side. This data can inform driver assignment decisions.
Maintenance Section
The Maintenance section tracks the vehicle's service history and maintenance costs.
| Field | Description |
|---|---|
| Total Maintenance Cost | The sum of all maintenance expenses for this vehicle |
| Service Period (km) | The recommended service interval in kilometers |
| First Service Date | When the first maintenance was performed on this vehicle |
| Last Maintenance | Details of the most recent maintenance event, including date, status, priority, cost, and issue description |
High maintenance costs reduce ROI. Use this section to identify vehicles that require frequent or expensive repairs, which may indicate it is time to consider replacement.
Asset Data
The Asset Data section ties everything together with the purchase and depreciation context.
| Field | Description |
|---|---|
| Purchase Price | The original total purchase cost of the vehicle |
| Depreciation | The current accumulated depreciation amount |
| Depreciation Years | The useful life configured for depreciation calculation |
| Commission Rate | The percentage of revenue shared with drivers |
| Profit Status | Overall financial standing: Profit, Loss, or Break Even |
Understanding Profit Status
The Profit Status is the bottom-line indicator for each vehicle asset:
| Status | Meaning |
|---|---|
| Profit | The vehicle's total revenue exceeds all costs, including expenses, fines, commissions, and depreciation. The vehicle is a net positive for your fleet |
| Loss | Total costs exceed total revenue. The vehicle is costing more than it earns |
| Break Even | Revenue and costs are roughly equal. The vehicle is neither profitable nor unprofitable |
A vehicle may appear profitable when looking at revenue and expenses alone, but show a loss once depreciation is factored in. Always check the Profit Status in the Asset Data section for the complete picture.
Using ROI Data for Decisions
Identifying Underperforming Vehicles
Sort or filter the vehicle list by ROI % or Net Profit to find vehicles that are not meeting expectations. Investigate the cost and driver stats sections to determine whether the issue is high expenses, low revenue, or both.
Timing Vehicle Replacement
When a vehicle's maintenance costs are rising and its ROI is declining, it may be more cost-effective to sell or replace it. Compare the vehicle's current book value (purchase price minus depreciation) against its ongoing costs to make an informed decision.
Optimizing Driver Assignments
Use the Driver Stats section to identify the most profitable driver-vehicle combinations. If a particular driver consistently generates more revenue or fewer fines on certain vehicles, consider optimizing assignments accordingly.
Evaluating Funding Strategies
Compare ROI across vehicles with different funding sources (Cash, Bank Loan, Lease) to determine which financing method delivers the best returns for your fleet.