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    Paritosh Jain
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    This document discusses key financial dimensions in retail including profit planning, asset management, budgeting, and resource allocation. It describes profit and loss statements, balance sheets, strategic profit models, and other financial ratios for profit planning and asset management. Budgeting is discussed as estimating income and expenditures over a set period to better allocate resources and plan spending. Resource allocation considers the magnitude of capital versus operating expenditures and ways to enhance productivity such as improving employee performance and automating processes.

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    This document discusses key financial dimensions in retail including profit planning, asset management, budgeting, and resource allocation. It describes profit and loss statements, balance sheets, strategic profit models, and other financial ratios for profit planning and asset management. Budgeting is discussed as estimating income and expenditures over a set period to better allocate resources and plan spending. Resource allocation considers the magnitude of capital versus operating expenditures and ways to enhance productivity such as improving employee performance and automating processes.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    358 views13 pages

    Financial Dimension

    Uploaded by

    Paritosh Jain
    This document discusses key financial dimensions in retail including profit planning, asset management, budgeting, and resource allocation. It describes profit and loss statements, balance sheets, strategic profit models, and other financial ratios for profit planning and asset management. Budgeting is discussed as estimating income and expenditures over a set period to better allocate resources and plan spending. Resource allocation considers the magnitude of capital versus operating expenditures and ways to enhance productivity such as improving employee performance and automating processes.

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    Attribution Non-Commercial (BY-NC)
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    of 13

    FINANCIAL DIMENSIONS IN RETAIL

    BY :HIMANSHU BHARDWAJ PARITOSH JAIN


    3/25/12

    Profit planning Asset management

    Financial Dimensions Budgeting


    Resource allocation

    3/25/12

    Profit planning

    Profit & Loss statement

    A statement that summarizes a retailers revenues, cost & expenses during a period of time which can be a month, a quarter or an year. It comprises of:

    Net sales Cost of goods sold Gross profit Operating expenses

    3/25/12

    Assets Management
    It means managing assets and controlling liabilities. It comprises of:

    Balance sheet Strategic profit model Other ratios

    3/25/12

    Strategic profit model


    The relationship among the net profit margin, asset turnover, and financial leverage is expressed by the Startegic Profit Model, which reflects a performance measure known as return on net worth.

    3/25/12

    Other ratios

    Current ratio Quick ratio Gross profit ratio, etc.

    3/25/12

    BUDGETING

    Budgeting is an estimate of income and expenditure for set period of time.

    Budgeting outlines a retailer planned expenditure and income for a given time based on expected performance.

    3/25/12

    Benefits of preparing budget to a retailer

    Relate expenditure with expected performance. Better allocation of resources. Spending for various department is coordinated. Better planning may leads to efficiency. Retailer may become proactive. Analysis of budget with actual performance.

    3/25/12

    Retail Budgeting Process

    3/25/12

    Preliminary budget decision

    Top down or bottom up budgeting Time frame- yearly, semi annually , quarterly , monthly. Frequency of reviewing budget. Budget flexibility is prescribed. Budgeting on department or product wise.

    3/25/12

    Resource Allocation

    Magnitude

    Capital expenditure-long term investment in


    fixed assets.

    Operating expenditure- administrative cost.

    3/25/12

    Productivity
    The efficiency with which a retail strategy is carried out.

    Way to enhance productivity.

    Improve employee performance. Automating Small core worker during non-peak time. Supplemented part-timers in peak time.

    3/25/12

    THANK

    YOU

    3/25/12

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