Available Nowhere Else
The Institute's KEY RATIOS Calculator is one-of-a-kind, exclusively for retailers. Fast, accurate, relevant, it uses numbers you already know for inputs. In seconds, it generates the 6 Key Ratios for Retailers:
- Profit %
- Gross Margin %
- Inventory Turnover
- Current Ratio
- Debt-to-Worth Ratio
Then, using the drop-down menu, choose your retail segment. IMMEDIATELY compare your ratios to Performance Benchmarks for stores like yours!
Why does this matter?
First, it gives you some comparative benchmarks for your own planning. As you are looking ahead to the next year, you can quickly see whether your plans pass the initial "plausibility test".
- Are your margins, or your turns in line with the industry?
- What about your Current Ratio, and Debt-to-Worth Ratio?
- If not, can you substantiate why they differ?
This exercise is even more essential if you are seeking a loan from a bank.
These benchmark numbers for each retail segment are the first things that lending officers look at. And today, more than ever before, they must make safe, defensible decisions.