Understanding the business of retailing must begin with a good understanding of basic financial terminology. For many of us, it IS like learning another language, the language of retail business, what we call “Banker-ese.” This three-part series in the OWNERS Center covers the basic terms of retail financial management.
Quite a picture, isn't it? Which ratios are trending up? Down? Any suggest some shaky times ahead? Any surprises? But most importantly, how will yours compare? The source data is Risk Management Association's Annual Statement Studies. As you may know, RMA collects financial statements from banks, and aggregates the findings for all industries, not just retailing. RMA presents their data in 3 sections: the Top Quartile, the Middle Quartiles, the Bottom Quartile, for five different ranges of annual sales volume. Our Five Year Charts are based on the Middle Quartiles results.
Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"