Cfo Thought Leader

When Al Farrell tells us that finance leaders must never lose sight of the value of a business asset, as well as acquire a strong understanding of how to optimize the returns on it, we sense his frustration. This is not because he’s relating a situation in which management failed both to properly value an asset (which, Farrell tells us, was worth nearly $650 million) and to optimize the asset’s returns (which ended up being increased by 12 percent). Instead, Farrell’s angst was due to the fact that management’s asset utilization improvement feat was achieved on the eve of COVID-19’s arrival in the U.S., and the asset that was so adroitly leveraged to pump up returns was none other than a fleet of rental cars some 35,000 vehicles strong. Certainly, few industries were hit harder by COVID’s arrival than car rentals, and as car rental businesses go, few suffered a more direct hit than Advantage Rent A Car, where Farrell occupied the CFO office from 2016 to early 2022.   “The car rental business is like the airli