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Are You Winning or Losing - Tim Mclellan

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Tim Mclellan, a partner with B2B CFO asks whether or not your are winning or losing in the game of business.

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Are You Winning or Losing - Tim Mclellan

  1. 1. Are You Winning or Losing? Tim McLellan Partner, B2BCFO® May 27, 2010
  2. 2. 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
  3. 3. 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
  4. 4. Gross Profit Margin50.00% 47.60%45.00% 42.50%40.00% 34.20%35.00% 33.30% 29.10%30.00% 28.50% 22.00%25.00% 2009 21.00%20.00% 200815.00%10.00%5.00%0.00% Sm Retail Lg Retail Sm Comm Lg Comm 4
  5. 5. Net Profit before Owner Comp7.00% 6.23%6.00% 5.07%5.00% 3.96% 3.76%4.00% 2.98% 20093.00% 2008 1.93%2.00% 1.41% 0.88%1.00%0.00% Sm Retail Lg Retail Sm Comm Lg Comm 5
  6. 6. “Days” Calculation• Shows the amount of days outstanding that you have in balance sheet category.Example: Annual Sales $3.6 millionSales per Day: $3.6 mill / 360 days = $10,000 per dayA/R Outstanding: $600,000DS0 = $600,000 / $10,000 = 60 days sales i 6
  7. 7. A/R Days, aka DSO7060 58 52 54 545040 36 30 31 200930 25 20082010 - Sm Retail Lg Retail Sm Comm Lg Comm 7
  8. 8. Inventory Days60 5750 48 4340 3330 2009 2008 18 1920 14 1410 - Sm Retail Lg Retail Sm Comm Lg Comm 8
  9. 9. A/P Days4035 33 34 35 3130 28 29 2925 2420 200915 200810 5 - Sm Retail Lg Retail Sm Comm Lg Comm 9
  10. 10. Sales per Employee, in $000’s700 617 621600500400 380 361 355 2009300 274 235 2008 210200100 - Sm Retail Lg Retail Sm Comm Lg Comm 10
  11. 11. Profit per Employee60,000 57,01250,00040,00030,000 2009 200820,000 18,873 17,569 7,60010,000 7,505 8,000 8,788 2,689 - Sm Retail Lg Retail Sm Comm Lg Comm 11
  12. 12. Sales Growth %10.00% 5.00% 4.01% 0.97% 0.00% Sm Retail Lg Retail Sm Comm Lg Comm 2009 -5.00% -4.42% 2008 -6.58%-10.00% -7.45% -10.35%-15.00% -14.44% -16.42%-20.00% 12
  13. 13. Profit Growth %15.00% 12.75%10.00% 5.00% 0.00% Sm Retail Lg Retail Sm Comm Lg Comm 2009 -5.00% 2008-10.00%-15.00% -14.06% -15.23% -16.79%-20.00% -18.56% -21.36% -21.50% -17.86%-25.00% 13
  14. 14. Sample Report 14
  15. 15. Industry Comparison 15
  16. 16. Scorecard 16

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