Operations

Managment:
Financial Dimensions

PROFIT AND LOSS INCOME STATEMENT

SUMMARY OF RETAILERS REVENUES

AND EXPENSES OVER A GIVEN PERIOD
OF TIME.
REVIEW OF OVERALL AND SPECIFIC
REVENUES AND COSTS FOR SIMILAR
AND PROFITABILITY.

MAJOR COMPONENTS OF A
PROFIT AND LOSS STATEMENT
NET SALES
COST OF GOODS SOLD
GROSS PROFIT
OPERATING EXPENSES
TAXES
NET PROFIT AFTER TAXES

NET SALES

$300

COST OF GOODS SOLD

$200

GROSS PROFIT

$100

OPERATING EXPENSES

$10

OTHER COSTS

$20

TOTAL COSTS

$30

NET PROFIT BEFORE TAXES

$70

TAXES

$5

NET PROFIT AFTER TAXES

$65

ASSET MANAGMENT
THE BALANCE SHEET

ASSETS
LIABILITIES
NET WORTH
NET PROFIT MARGIN
ASSET TURNOVER
RETURN ON ASSETS
FINANCIAL LEVERAGE

ASSET MANAGMENT
1.THE
STRATEG
IC
PROFIT
MODEL

2. KEY
3.
BUSINESS FINANCIAL
RATIOS
TRENDS IN
RETAILING

STRATEGIC PROFIT MODEL

THE STRATEGIC PROFIT

MODEL COMBINES TWO
DECISION MAKING AREAS
1.PROFIT PLANNING
2.ASSET MANAGEMENT

KEY BUSINESS RATIOS

CURRENT
RATIO
QUICK
RATIO

COLLECTION
PERIOD
ACCOUNTS
PAYABLETO
NET SALES

OVERALL
GROSS PROFIT

FINANCIAL TRENDS IN
RETAILING
1. SLOW GROWTH IN US ECONOMY
2. FUNDING SOURCES
3. MERGERS,CONSOLIDATIONS,
SPINOFFS.
4. BANKRUPTCIES AND LIQUIDATIONS
5. QUESTIONABLE ACCOUNTING
6. FINANCIAL REPORTING PRACTISES