Family Clothing Stores

NAICS 448140: This industry comprises establishments primarily engaged in retailing a general line of new clothing for men, women, and children, without specializing in sales for an individual gender or age group.  These establishments may provide basic alterations, such as hemming, taking in or letting out seams, or lengthening or shortening sleeves.
 



click each Key Ratio box below to view Benchmarks charts

"How and when can these benchmark numbers be used?"

For perspective 

Calculate these ratios for your own business – see the "Cheat Sheet" for formulas, or save time with the KEY RATIOS Calculator. Then see how you compare to your retail industry segment.

For goal setting 

Use these benchmarks when you are setting your own target ratios for the next year.

For financing 

Seeking a bank loan for your business? The bankers will look at these industry benchmarks as they assess your store's performance. 

For understanding 

The credit departments of your vendors and landlords will examine your ratios to assess your credit worthiness.

For saving time 

Use The ROI's KEY RATIOS Calculator to quickly calculate your own ratios.   

Have questions?

Get answers at The ROI's Retail Benchmarks Resource Center. Free to everyone to use

See the how-to article: Go Figure! How to Calculate Your Key Ratios - in 12 Seconds Each!

Watch and listen to the recorded webinar: The Retail OWNER'S DASHBOARD

Very quickly, you can see how and why to monitor the true "vital signs" of your business. 

 




About the Retail Segments

The segments featured at The ROI reflect the definitions and designations of the North American Industrial Classification System (NAICS).

The top of each Retail Segment Page on The ROI site includes the NAICS code and the NAICS definition for that industry segment.
 

About the Key Retail Ratios

The ROI has selected six key ratios (from the abundance of ratios available) that are particularly important for retailers to regularly monitor and manage. See The ROI's Benchmarks Resource Center to learn more about these key ratios for retailers.

The ROI's exclusive Retail Benchmark Trend Charts show the median value reported by Risk Management Association's Annual Statement Studies for each of these key ratios each year.

Remember, there also is a Top Quartile – and Bottom Quartile – of results for every segment. See your local library for those details.

The ROI's Quick Reference "Cheat Sheet" 

The Formulas • Where to Find the Numbers • What Each Ratio Tells You

 

 
 

How to Calculate
Your Key Financial Ratios

Where to Find the Information

What the Ratios Tell

Current Ratio =
Current Assets divided by Current Liabilities

Your balance sheet

Tests for solvency or ability to meet current debt obligations. Measures how well you can cover current liabilities with liquid assets.

 (Higher is better; 2.0 is average.)

Quick Ratio =
Cash + Accounts Receivable divided by Current Liabilities

Your balance sheet

Tests the degree of solvency most strictly, using only the most liquid current assets. 

(Higher is better; 0.5 is average.)

Debt-to-Worth Ratio =
Total Liabilities divided by Total Owner's Equity

Your balance sheet

Compares what the company "owes" creditors to what it "owns." Measures the financial strength of the business.

(Lower is better; 1.0 is average.)

Inventory Turnover =
COGS (Cost of Goods Sold) divided by Average Inventory @Cost

COGS are recorded on your income statement; Inventory is found on your balance sheet.

Measures how often, at present rate of sales, your entire inventory is completely sold and replaced during a given year. Measures inventory "velocity." 

(Higher is better; average depends on industry.)

Gross Margin % =
Gross Profit $ divided by Net Sales

Your income statement (P&L)

Indicates percentage of sales dollars remaining after costs related to purchasing merchandise are recognized.

Profit Before Taxes % =
Profit Before Taxes divided by Net Sales

Your income statement (P&L)

Indicates percentage of sales dollars remaining after all costs (except taxes) are recognized.

(Higher is better; average depends on industry.)

Return on Assets (ROA) =
Profit Before Taxes divided by Net Assets

Your income statement and balance sheet

Indicates pretax return on assets; measures productivity of assets. 

(Higher is better; average depends on industry.)

Gross Margin Return on Inventory (GMROI) =
Gross Margin $ divided by Average Inventory @Cost

Gross Margin - your income statement
Inventory @ Cost - your balance sheet.

Measures the gross margin returned for each dollar invested in inventory. (Higher is better; average depends on industry.)

   
     

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Anxious to improve Cash Flow, Profits, and Inventory??

©Copyright, The Retail Owners Institute®. Benchmark Trend Charts based on data from Risk Management Association Annual Statement Studies, 2020/2021.  www.rmahq.org

 

The ROI's INDEX of SALES POTENTIALWhat's the sales potential of your inventory?

Most retailers know their average inventory over the year. But the question is this: What are the likely sales from that much inventory? 

Here's how to find out. Use our Index of Sales Potential calculator. See what sales volume other retailers achieve. Find out now

 

 



The ROI's KEY RATIOS CalculatorQuick – see how your ratios compare

In seconds, generate 7 key ratios for retailers. Auto-magically!

And then, immediately compare your performance to the benchmarks for your retail segment.

Go here. How are your store's "vital signs"?

 

 

 

 

 

The ROI's GMROI GROWTH RATER

Cash crunch ahead?!

Here is a fast, simple, and extremely telling measure of a retailer's financial viability!

Go here. Use The ROI's unique GMROI Growth & Bankability Rater.  

 

 



Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"