Are You Winning or Losing? Tim McLellan Partner, B2BCFO ® May 27, 2010
Are You Winning or Losing - Tim Mclellan
Dec 05, 2014
Tim Mclellan, a partner with B2B CFO asks whether or not your are winning or losing in the game of business.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Are You Winning or Losing?
Tim McLellanPartner, B2BCFO®
May 27, 2010
Benchmarking
• Comparison of your Business to Other Businesses of like size and industry.
• Difficult because financial information is not public.
• Extremely difficult to evaluate performance in a down market.
2
Four Sets of Data
• Retail Store $1 – $10 million• Retail Store greater than $10 million• Commercial Dealer $1 - $10 million• Commercial Dealer greater than $10 mill.
3
Gross Profit Margin
Sm Retail Lg Retail Sm Comm Lg Comm0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
34.20%
47.60%
28.50%
21.00%
33.30%
42.50%
29.10%
22.00%20092008
4
Net Profit before Owner Comp
Sm Retail Lg Retail Sm Comm Lg Comm0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
1.93%
3.96%
1.41%
5.07%
0.88%
6.23%
2.98%
3.76%20092008
5
“Days” Calculation
• Shows the amount of days outstanding that you have in balance sheet category.
Example: Annual Sales $3.6 million
Sales per Day: $3.6 mill / 360 days = $10,000 per day
A/R Outstanding: $600,000
DS0 = $600,000 / $10,000 = 60 days sales i
6
A/R Days, aka DSO
Sm Retail Lg Retail Sm Comm Lg Comm -
10
20
30
40
50
60
70
30 31
52
58
25
36
54 54
20092008
7
Inventory Days
Sm Retail Lg Retail Sm Comm Lg Comm -
10
20
30
40
50
60
48
57
18 19
43
33
14 14
20092008
8
A/P Days
Sm Retail Lg Retail Sm Comm Lg Comm -
5
10
15
20
25
30
35
40
33 34
31
24
28
35
29 29
20092008
9
Sales per Employee, in $000’s
Sm Retail Lg Retail Sm Comm Lg Comm -
100
200
300
400
500
600
700
235
380
274
617
210
355 361
621
20092008
10
Profit per Employee
Sm Retail Lg Retail Sm Comm Lg Comm -
10,000
20,000
30,000
40,000
50,000
60,000
2,689
8,000 8,788
57,012
7,505 7,600
18,873 17,569
20092008
11
Sales Growth %
Sm Retail Lg Retail Sm Comm Lg Comm
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
-7.45%
-14.44%-16.42%
-10.35%
-6.58%-4.42%
0.97%
4.01%
20092008
12
Profit Growth %
Sm Retail Lg Retail Sm Comm Lg Comm
-25.00%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
-18.56%-15.23%
-16.79%-14.06%
-21.36% -21.50%
-17.86%
12.75%
20092008
13
Sample Report
14
Industry Comparison
15
Scorecard
16
Related Documents
