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SUPPLY CHAINS TO ADMIRE | 2023
The Criteria
Connecting supply chain performance to balance sheet information can be gnarly and confusing. We detail the steps in Figures 5 and 6 to help the reader understand the process.
Figure 5. The Supply Chains to Admire Analysis Criteria
Figure 6. Calculation Example
COMPANY INFORMATION IMPROVEMENT
VALUE
PERFORMANCE
RESULTS
NAME
SUPPLY CHAIN INDEX RANK
MARKET CAP PRICE TO TANGIBLE BOOK VALUE
GROWTH OPERATING MARGIN
INVENTORY TURNS
ROIC
•
Co A
7 (max=18)
$5,267
6.5
16.7%
0.12
6.9
11.3%
WINNER
Co B
13
$3,960
0.2
4.3%
0.08
9.8
8.8%
Co C
6
$2,658
2.5
6.7%
0.06
6.2
1.5%
... and so on MEAN
5.9%
$4,227
3.4
5.9%
0.09
6.7
7.0%
Allowable % from mean (within the margin of error)
NA
-12.6%
-26.5%
-13.0%
-7.3%
-18.6%
-8.7%
GREEN - meeting requirement to qualify as a winner
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