Annual P&L Study 2021 – Being the Best!
by Tim Quebedeaux
From Raising the Bar to Pushing the Boundaries! In the 2019 P&L Study the top line comparison was changed from the High Achiever and Best Practices group, to only the Best Practices Group. Well, that changed in 2020, in creating the Best of the Best Group, which in 2021’s P&L Study, took the place of the Best Practices group as the lop line in the Study to compare against.
Like in marksmanship, we want everyone to aim small, miss small. This small group of Best of the Best (BOTB) had 9 of the 10 Garden Centers repeat in 2021. We wanted to show a standard above what had been presented in the past. Not only did this give everyone a higher standard to aim for, it gives the Best Practices Group (largest number ever at 48) a chance to raise their own standards.
A lot of importance is placed on profit year to year. In 2021, we increased profits over record numbers in 2020 from 13.6% to 15.3% for the Total Group. Kudos to all of you, to maintain a level of awareness of what was coming, create a plan based off of last year’s success and then executing it. All that hard work and profit transfers from your P&L statement into your Balance Sheet. It is the ultimate report card of a business’s standing. At the end of each year the goal is to build and retain equity on your Balance Sheet.
With your Assets and Liabilities, there are three key ratio’s we measure when looking at your Balance Sheet; Current, Quick and Equity to Debt ratios. The Current is what you currently owe over 12 months compared to your current assets. This number should be at least at 2.0, meaning you have at least twice the current assets to cover your current or short-term liabilities. The Quick ratio is the same as Current ratio except without Inventory in your current assets. This number should be at least 1.0. Why have the Quick ratio? When a bank or lender evaluates a business, the inventory for them is difficult to liquidate, so they want to know your ability to pay your short-term debt, without dependance on your inventory. The last ratio is the equity to Debt Ratio. This measures how much of your company you own verses your lenders. A ratio of greater than one is desirable, as it would indicate you own at least half of your business.
It was not a surprise to me that the BOTB group showed the best ratios on their Balance Sheets, but the manner in which they were better was astounding. By an average of 6 times greater that total group. We will see how these Garden Centers perform in 2022, but their past profitable years have built the best Balance Sheet ratios as they are the BEST OF THE BEST!
9 out of the 10 BOTB Garden Centers in 2020, repeated in 2021, Just as reliable has hardy perennials, the Perennially Profitable Garden Centers for 2021 are:
- Atlantic Nursery, Freeport, NY
- Civano Nursery, Tuscon, AZ
- Fairview Greenhouses, Raleigh, NC
- The Family Tree Garden Center, Snellville, GA
- Four Seasons Greenhouse & Nursery, Dolores, CO
- Gill Garden Center & Landscape Co., Corpus Christi, TX
- Plants for All Seasons, Houston, TX
- Rolling Green Nursery, Greenland, NH
- Sunnypoint Gardens, Egg Harbor, WI
- Watters Garden Center, Prescott, AZ
Congrats to these Centers, as they have reached a goal that we all are striving to attain. Not just Best Practices in one year… but year after year after year. How are they able to be profitable every year? That… is a good question!
Let’s ask them in Kansas City!
Got questions or need more information about The Group's the Annual P&L Study or the Weekly Department Review (WDR)? Give Tim a call or email.
Tim Quebedeaux
Cell: 770.355.6249
Email: CLICK HERE
Group Client Reminder: You can watch the March 10th GROUPtalk LIVE presentation when Tim and Steve presented 2021 P&L Study Reveal. Log into the WebSystem and go to the Clients-Only menu and down to Training - 2021 P&L Study Reveal.
Tim Quebedeaux, RetailKPI Consulting, is a service provider for The Garden Center Group and manages all Group financial sharing programs. The Weekly Department Review (WDR) and The Annual P&L Study are industry exclusives developed by The Garden Center Group and are included in your retainer!
REMEMBER: Your interaction (by phone and email) with Group Service Providers such as Tim Quebedeaux, Sid Raisch, Jean Seawright, John Kennedy, and of course Danny Summers are included in your retainer! So what are you waiting for? Take advantage of all that The Group has to offer and give them a call or send an email now!
