1 / 2

Creating a Successful Financial Plan

This analysis of Sam's Appliance Shop reveals that the net profit on sales ratio stands at 3.24%, significantly lower than the industry median of 7.6%. After all expenses are deducted, Sam retains only 3.24 cents of every sales dollar as profit. This disparity suggests potential imbalances in operating expenses that need addressing. A comprehensive financial plan can help identify areas for improvement to increase profitability and align closer with industry standards, ensuring sustainable business growth.

conroy
Download Presentation

Creating a Successful Financial Plan

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Creating a Successful Financial Plan

  2. Sam’s Appliance Shop Net profit on sales ratio = 3.24% Industry Median Net profit on sale ratio = 7.6% Interpreting Ratios After deducting all expenses, Sam’s has just 3.24 cents of every sales dollar left as profit - less than half the industry average. Sam may discover that some of his operating expenses are out of balance.

More Related