Key Financial Metrics

The table that follows shows the key metrics used by most retailers to track and manage their performance. In particular, The Finance Function is very concerned with Return on Capital Employed or Return on Net Assets, Inventory Turn, Gross Margin Percent, Expenses Percent To Sales and expenses measured by line item and expressed as a percent to sales. They may also be concerned with other measures such as the Quick Ratio, Acid Ratio, Gearing and Interest Cover. This latter set tends to be examined infrequently, perhaps quarterly, half yearly or annually.

Widely Used Through The Business

Sales
• Sales vs. Last year
• Sales vs. Plan/
Budget
• Like for like Sales
• Sales per Square Foot/Meter Inventory
•Stock Turn

•Availabilty/In-Stock %
Margins
• Gross Margins %
• Markdown %
Profit
• Pre-Tax Profit %

Buying & Merchandisiing

Sales
• Sell Through Inventory
• GMROI
• Fresh Stock %
• Average Stock
• Weeks of Supply

Margins
• Markup %
• GMROF

Store Operations

Sales
• Average Sale (Money)
• Average Sale (Items)
• Conversion Rate
• Transaction Count

Inventory

• Shrinkage Margins
•Local Markdown %

Labor

• Labor % Sales
• Sales per FTE
• Sales per Labor Hour
• GMROL

Finance

• Return on capital Employed
• Return on Net Asset
• Interest Cover %
• Expense Lines %

Marketing

• Market Share
• Share of the Purse/Wallet Corporate & Shareholders Human Resources Corporate & Shareholders
• Share Price
• Earnings per Share
• Employee/Associate Turnover
• Training Cost per Associate
• Absentee