Are You Winning or Losing - Tim Mclellan
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Are You Winning or Losing? Tim McLellan Partner, B2BCFO ® May 27, 2010
description
Tim Mclellan, a partner with B2B CFO asks whether or not your are winning or losing in the game of business.
Transcript of Are You Winning or Losing - Tim Mclellan
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.
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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.
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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
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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
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“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
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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
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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
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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
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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
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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
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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
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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
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Sample Report
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Industry Comparison
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Scorecard
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