Financial Statements & Ratios
Operat i ng Product i v i ty Rat i os
Operational issues are frequently overlooked as determinants of profitability. However, the ability to increase the store’s average transaction or to produce a higher level of sales per square foot has a dramatic impact on financial results. The following ratios are the most commonly measured ones in evaluating operational performance. Customer Mix For many stores, an inordinate amount of time and effort is spent serving unprofitable customers. The customer mix should be reviewed periodically in light of the sales being generated for the business. In most instances stores attempt to support too large of a customer base rather than maximizing potential with their most profitable customers.
Conven-
Contractor
ience
Core
Super
Home Center
Oriented
Hardware
Hardware
Hardware
Supply
Selling Space
Square Feet Of Retail Selling Space Sales $ Per Retail Square Foot Gross Profit $ Per Retail Square Foot Inventory $ Per Retail Square Foot
5,327
9,456
16,717 267.50 108.80
12,000 462.90 152.90
7,583
349.80 129.80
292.60 117.80
721.70 262.40 133.80
67.10
54.80
50.30
81.00
Transactions
Number Of Transactions (Annually)
64,894
100,837
146,801
78,698
42,745
Sales $ Per Transaction
27.90
27.00
30.70
62.40
83.80
Customers (% of sales)
DIY Customers
75.0 15.0 10.0
84.5 10.0
85.0 10.0
46.1 41.9 10.0
25.9 58.0 15.5
Contractors
Commercial/Industrial Accounts
5.5 0.0
5.0 0.0
Other Customer Types
0.0
2.0
0.6
Total Sales
100.0
100.0
100.0
100.0
100.0
Business Hours
Monday Tuesday
10.0 10.0 10.0 10.0 10.0
11.0 11.0 11.0 11.0 11.0 10.0
12.0 12.0 12.0 12.0 12.0 10.8
10.5 10.5 10.5 10.5 10.5
9.5 9.5 9.5 9.5 9.5 7.0 0.0
Wednesday
Thursday
Friday
Saturday
9.0 5.0
9.0 0.0
Sunday
7.0
8.0
Total Hours Open Per Week
64.0
72.0
78.8
61.5
54.5
13
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