Annual P&L Study 2020: Best of the Best Awards
by Tim Quebedeaux
Raising the bar… In the 2019 P&L study the top line comparison was changed from the High Achievers and Best Practices Group to only the Best Practices Group. 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 gave those who were profitable, but wanted more, a chance to raise their own standards.
Well, 2020 blew that out of the water! We had more than half of the reporting centers achieve Best Practices and a whopping 82% report above High Achievers status. Once again, the need to keep raising the bar arose thus, The Best of the Best Group was born. In looking into this group, we will find out what it takes to capitalize on the opportunity in 2020. What did the KPI’s tell us about how they realized the highest level of profitability (18% to 25%)? As we crunch those numbers, we will compile a new report that allows those who reported to compare their performance to this group. This will be available during The Fall Event 2021 in Wilmington, DE.
A lot of importance is placed on profit year to year. From 2019 to 2020, we saw an increase from 5.6% to 13.6% for the Total Group. A Profit and Loss statement takes a look at a specific time frame... At the end, any profits earned are transferred to the balance sheet. This is the ultimate report card of a business’s standing: How much equity you can build and retain 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 what is 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 do 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.
In the 2020 P&L Study it is no accident that the Best of the Best Group shows some of the best ratios on their balance sheets; They ARE the Best of the Best in 2020!
Atlantic Nursery
Bedner's Farm & Greenhouse
Civano Nursery
Fairview Greenhouses
Four Seasons Greenhouse & Nursery
Gill Garden Center & Landscape Co.
Plants for All Seasons
Rhoads Garden Center, Inc.
Rolling Green Nursery
Sunnypoint Gardens
Watters Garden Center
When you report to the P&L Study, you have a 1-hour call with Steve and/or myself to review your performance in 2020. Take advantage of this opportunity to talk with us about your numbers! Contact me ASAP to set up your call today!
Got questions or need more information about The Group's the Weekly Department Review (WDR) or Annual P&L Study? Give Tim or Steve a call or email.
Tim Quebedeaux
Cell: 770.355.6249
Email: CLICK HERE
Steve Bailey
Cell: 618.521.5225
Email: CLICK HERE
Tim Quebedeaux and Steve Bailey with RetailKPI Consulting are service providers 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, Steve Bailey, Robert Hendrickson, Sid Raisch, Jean Seawright, and John Kennedy 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!