Supermarkets & Grocery Stores

NAICS 445110: This industry comprises establishments generally known as supermarkets and grocery stores primarily engaged in retailing a general line of food,
such as canned and frozen foods; fresh fruits and vegetables; and fresh and prepared meats, fish, and poultry.
Included in this industry are delicatessen-type establishments primarily engaged in retailing a general line of food.

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Five Year Trends, Benchmarks

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11 NOV 2021
Financial Strength

CURRENT Ratio

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©Copyright, The Retail Owners Institute^®. Benchmark Trend Charts based on data from Risk Management Association Annual Statement Studies^®Financial Ratio Benchmarks, 2021–2022. www.rmahq.org

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How to Use
Questions?
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"Cheat Sheet"

"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.

Want to get these results even faster? Use The ROI's free KEY RATIOs Calculator.

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.)