Executive Summary
Summary of Fi nanci al Rat i os
Typical Ace Hardware
High
Typical
Profit Ace Hardware
Non-Ace Hardware
Store
Typical Sales Volume ($)
3,004,134
3,482,541
1,923,952
Strategic Profit Model
Profit Margin Asset Turnover
9.6 2.3
15.3
8.6 2.0
2.9
Return On Assets (Pre-Tax %)
22.1
44.4
17.2
Financial Leverage
1.5
1.4
1.5
Return On Net Worth (Pre-Tax %)
33.1
62.2
25.8
Income Statement (% of sales)
Net Sales
100.0
100.0
100.0
Cost Of Goods Sold
60.4 39.6
59.0 41.0
61.6 38.4
Gross Margin Before Patronage Div.
Patronage Dividend
1.3
1.2
1.0
Gross Margin
40.9
42.2
39.4
Operating Expenses Payroll Expenses Occupancy Expenses
17.9
15.5
20.8
4.7 9.9
4.8 8.1
5.1 8.2
Other Operating Expenses Total Operating Expenses
32.5
28.4
34.1
Operating Profit
8.4 1.2 9.6
13.8
5.3 3.3 8.6
Other Income/Expenses
1.5
Profit Before Taxes
15.3
Financial Ratios
Current Ratio Quick Ratio
6.5 1.8
6.7 2.1 9.6
6.9 2.2
Accounts Payable To Inventory
10.5 12.9
11.2 16.8
Accounts Payable Payout Period (Days)
10.1
Debt To Equity
0.4
0.3
0.5
Inventory Productivity
Inventory Turnover
3.2
3.6
2.4
Inventory Holding Period (Days) Gross Margin Return On Inventory
113.3 212.5
102.5 253.0
150.0 158.2
EBITDA (% Of Sales)
11.3 10.0
16.2 15.5
N/A N/A
EBIT (% Of Sales)
Operating Productivity
Square Feet Of Retail Selling Space Sales $ Per Retail Square Foot Gross Profit $ Per Retail Square Foot
10,000 289.10 116.30
10,300 323.90 135.00
10,000 192.00
76.00
Employee Productivity
Number Of Full-Time Employees Number Of Part-Time Employees
7 6
8 6
N/A N/A
Sales $ Per FTE Employee
237,560 97,382 39,104
248,392 104,270 39,200
213,772 84,226 44,465
Gross Profit $ Per FTE Employee Payroll $ Per FTE Employee Personnel Productivity Ratio ( %)
43.8
36.7
N/A
4
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