2017 NOPA Dealer Financial Comparison Report...Introduction NOPA DEALER FINANCIAL COMPARISON AND...
Transcript of 2017 NOPA Dealer Financial Comparison Report...Introduction NOPA DEALER FINANCIAL COMPARISON AND...
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2017NOPA Dealer
Financial Comparison & Benchmarking Guide
C O N F I D E N T I A L
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2017 NOPA Dealer Financial
Comparison and Benchmarking Guide
This year’s NOPA Dealer Financial Comparison and Benchmarking Guide was designed in cooperation with NOPA and
key industry members.
The NOPA Dealer Financial Comparison and Benchmarking Guide presents a detailed analysis of key operating data from
the office products dealers industry. Based on confidential surveys completed by 34 companies, this report includes a
compilation and analysis of revenue and operations data, as well as additional profile information.
The NOPA Dealer Financial Comparison and Benchmarking Guide is published by the National Office Products Alliance
(NOPA) whose mission is to provide independent office products dealers with the information, knowledge and tools they
need to help them to be successful in today's ever-evolving business environment.
The NOPA Dealer Financial Comparison and Benchmarking Guide was compiled, tabulated and analyzed by Industry
Insights, Inc. (www.industryinsights.com), an independent professional research and consulting firm that specializes in
conducting financial operating surveys, compensation studies, market assessment surveys, customer satisfaction research,
educational programs and other forms of customized research.
Copyright © 2017. All rights reserved. No part of this report may be reproduced in whole
or in part without written permission from the National Office Products Alliance.
National Office Products Alliance 3601 E. Joppa Road, Baltimore, MD 21234 410-931-8100
www.nopanet.org
Table of Contents
INTRODUCTION
About This Report ............................................................................................................................................................... 1 Sample Company Performance Report.......................................................................................................................... 3 How to Use This Report ..................................................................................................................................................... 4 Understanding the Metrics ................................................................................................................................................ 6
EXECUTIVE SUMMARY
Respondent Profile ........................................................................................................................................................... 13 Overall Profitability......................................................................................................................................................... 17 Expense Management ..................................................................................................................................................... 21 Inventory Management ................................................................................................................................................... 22 Personnel and Accounts Receivable Management ..................................................................................................... 23 Other Performance Indicators ........................................................................................................................................ 25
DETAILED INFORMATION
By All Respondents, Dealer Type, and Total Revenues ............................................................................................. 33 By Profit Group and Market Area Served .................................................................................................................. 47 By Number of Full-Time Equivalents Employees ......................................................................................................... 61
APPENDIX
Survey Methodology ....................................................................................................................................................... 75 Key Ratio Definitions........................................................................................................................................................ 75 Survey Questionnaire ...................................................................................................................................................... 77
I N T R O D U C T I O N
Introduction
NOPA D E A L E R F I N A N C I A L C O M P A R I S O N A N D B E N C H M A R K I N G G U I D E
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I N T R O D U C T I O N
A B O U T T H I S R E P O R T
This year’s NOPA Dealer Financial Comparison and Benchmarking Guide represents the most complete, accurate
and up-to-date database of office products dealers financial and operating data published anywhere. The
information contained in this report is designed to provide easy-to-understand guidelines for identifying business
strengths, weaknesses and performance improvement opportunities.
The NOPA Dealer Financial Comparison and Benchmarking Guide was prepared by Industry Insights, Inc. of
Columbus, Ohio, while working closely with NOPA in the design of the study. Confidential survey forms (refer to the
Appendix for a sample) were made available to NOPA members via an online survey form and an Excel survey
version in July 2017.
This report includes comparative financial ratios and statistics by all participants overall, by dealer revenue volume
size, by size of market area, and by other important criteria. In addition, this report includes data for a special
grouping of high profit vs. low profit dealers.
Perhaps the most valuable feature of this NOPA Dealer Financial Comparison and Benchmarking Guide is that all
firms participating in the survey automatically received a confidential Company Performance Report. This report
presents a company's own ratios and data computed in a manner consistent with those appearing in the industry
report and displayed alongside the appropriate industry comparatives. Representative pages from a sample
Company Performance Report are illustrated on the following page.
As shown on the following page, on any given line of the Company Performance Report, a dealers’ own data is
included along with reported norms for all respondents and for similar companies. Thus, the individual
owner/manager is provided invaluable information without needing to spend time and effort performing the
calculations manually.
In addition to receiving access to the Company Performance Report, all participants of the 2017 NOPA Dealer
Financial Comparison & Benchmarking Survey receive access to online reporting tools. These interactive tools
allow for more specific information than this report could reasonably provide. Using the platform, users are able to
create their own data cuts to create benchmarks that most closely match their organizations. For example, a
participant could create a data cut based on a specific dealer revenue volume range and by total number of full-
time equivalent employees, whereas the report only provides single-level cuts (e.g., dealer revenue volume or number
of full-time equivalent employees). Clickable graphs are available throughout the report that will show the
respondent’s data versus the filter they selected as well as a graphical dashboard of the respondent’s data
compared to key industry benchmarks. The online reporting tools platform is housed on Industry Insights’ secure server
and is located at www.NOPAresearch.com. For convenience, all results can be exported to Excel.
Introduction
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S A M P L E C O M P A N Y P E R F O R M A N C E R E P O R T
The images on this page provide a sample of each of the sections that are included in each participant’s Company
Performance Reports (CPR). The actual CPR that participants receive contains information about their organization, compared
against other similar companies and formatted as the pages below.
NOPA Dealer Financial Comparison & Benchmarking Guide
Y O U R D A T A
C O M P A R E D T O T H E
A P P R O P R I A T E
I N D U S T R Y N O R M S
A “ R E P O R T C A R D ”
E V A L U A T I O N O F
Y O U R O W N F I R M ’ S
P E R F O R M A N C E
NOPA Dealer Financial Comparison & Benchmarking Guide
Introduction
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H O W T O U S E T H I S R E P O R T
This NOPA Dealer Financial Comparison and Benchmarking Guide has been designed to help industry firms to
evaluate their own performance relative to that of similar companies in order to identify improvement opportunities.
The statistics in this report represent broad performance "yardsticks" against which a company's performance can be
measured.
Using this information, industry dealers can compare their own firm's financial and operating performance with: the
industry as a whole; dealers of a comparable revenue; dealers of a similar market area size; dealers with or without
retail stores; dealers by profitability; and dealers by number of full-time equivalent employees. Spotting significant
differences between your own firm's performance and the industry composites can be the first step toward improving
performance. Keep in mind, however, that:
1. A deviation between your firm's figures (for any performance measure) and numbers in the report is not
necessarily good or bad. It merely indicates that additional analysis may be required. As a rule, the larger the
difference, the greater the need for further investigation.
2. In situations where large deviations do exist, it may be helpful to go back and calculate the same performance
measure over the past several years to identify any trends that may exist.
3. The information in this report should be used as a tool for informed decision making rather than absolute
standards. Since firms differ as to their location, size, and other factors, any two firms can be successful yet have
very different experiences with regard to certain performance measures.
Understanding the Data The tables in this report are organized to include a number of important findings for each relevant “grouping” of
similar companies.
How the Tables Are Organized The tables in this report are organized to include a number of important financial ratios for each relevant "grouping"
of similar firms. In particular, the major "groupings" used include:
All Reporting Dealers – refers to the results of all dealers responding to the survey.
Commercial Dealers with Retail Stores vs. without Retail Stores
Dealers by Revenue
Profitability – refers to those firms whose operating profit as a percentage of total revenues are in the top
50th percentile and bottom 50th percentile of performance among all respondents.
Dealers by Population Size of Market Area Served
Dealers by Number of Full-time Equivalent Employees
The table of contents shows specifically where each table can be found.
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Interpreting the Numbers Most of the performance indicators included in this study are reported on the basis of medians rather than
arithmetical averages or means. Unlike the mean, the median is not distorted by a few unusually high or low values
that may exist in the sample due to special circumstances. The "median" figure represents the mid-point of the figures
for a particular measure, with one-half of the firms reporting figures above it and one-half below. Each median was
computed independently based on the companies that reported for that item. As a result, mathematical
relationships do not always exist when different ratios are used together in the calculation.
Smallest Number Largest Number Reported Typical Reported
Lower 25% of
Reported Figures
Middle 50% of Reported Figures
(or Middle Range)
Upper 25% of
Reported Figures
Median
Reported figures were not used unless they were in accordance with the survey instructions and definitions. In cases
where the number of companies reporting was considered inadequate for the computation of a meaningful figure,
blank spaces appear in the tables, or an insufficient data (*) notation is included.
Further insights into how to use this report are included in the Appendix in the section entitled: "Key Ratio Definitions."
An important point to keep in mind when using this report is that even relatively simple analysis of your company's
own financials using the industry data for comparison can yield important insights into your business. You do not have
to be a financial expert to benefit from this information.
Using Ratios While it is extremely important to analyze financial information in dollars and cents, it is essential that percentages
and ratios be used if the data is to be compared to past performance or to industry standards. For example, it is
necessary to know your annual “total employee compensation expense,” but it is even more essential to compare this
expenditure with the value it produces. A useful measure of effectiveness of compensation expense is the
percentage that such expenses are relative to revenues. Therefore, a ratio such as total employee compensation
expense as a percent of total revenues can be useful in determining how efficiently your firm uses payroll dollars
over time or compared to other NOPA dealers in general.
In addition, just as dollar figures are not too meaningful by themselves, ratios should not be used in isolation. In
combination, they can give an extremely accurate overall picture of financial performance and financial position.
Financial performance refers to how well a firm performs over a period of time (generally one year) and financial
position refers to financial strength at a given point in time.
The tables in this report include key ratios for comparing your firm’s performance to norms for other NOPA
companies in the following key areas: overall profitability performance, asset and financial management, personnel
management, sales analysis, income statement performance, balance sheet, and other information.
Introduction
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U N D E R S T A N D I N G T H E M E T R I C S
Overall Performance Ratio Analysis Included in this report are key ratios for comparing a company's overall performance to industry norms in each of
three areas: profitability, productivity (or efficiency), and financial management. In using this report, it is important
to prioritize time and effort by starting with the Overall Performance Measures. These are overall profitability
measures that provide an overview of a dealer’s success. As discrepancies are identified between a company's
performance measures and the industry norms, further investigation will be needed as to the reasons for these
discrepancies.
Profitability While there are several ways to look at profitability, the most useful are those that compare profits to some other
quantity. Perhaps the most frequently cited is net profit margin, or net profit before tax as a percent of total
revenue. This ratio measures the difference between what a company receives in revenues and spends over a period
of time. It is highly dependent upon pricing policy and expense control. Also, as you analyze your own firm’s
profitability performance versus industry norms keep in mind that significant profitability variations can exist
depending on the amount of owner’s compensation. High cash compensation by owners will lower profitability and
low cash compensation will increase profitability.
Perhaps the best measure of overall profitability is return on investment (ROI). The two most important measures of
ROI are return on assets and return on owner’s equity (or net worth). Return on assets is defined in this report as
net profit before tax divided by end-of-year total assets. It is an excellent indicator of the percentage return on
total assets employed in the business.
While return on assets measures ROI from a business management standpoint, return on owner’s equity (or net
worth) is the best measure of return to the owners of the business. It is defined in this report as net profit before tax
to net worth. Return on net worth is the percentage return to the owners compared to the amount that they have
invested in the business.
Productivity
Productivity (or efficiency) is simply the output produced compared with input expended. As a rule, the more output
produced per employee, per square foot of space, dollar investment or whatever the input, the more profitable a
company can be. Industry firms need to always strive to improve the productivity of their assets, their space, and
their personnel. But in order to improve productivity, you first have to measure it.
Space productivity is best measured by “total revenues per total square feet of space” as well as “net profit before
tax per square foot of space.” However, over time, this figure can be distorted by inflationary factors.
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Personnel productivity can be measured in numerous ways. The easiest and most commonly used methods are:
Total Revenues per Employee—a good overall measure, but subject to distortion by inflation. Always use full-
time equivalents for employee counts.
Net Profit before Tax per Employee—also good overall measure, but distorted by inflation.
Total Employee Compensation Expense as a Percent of Total Revenues—complements the previous measure
by adding the dimension of compensation levels instead of just number of employees. Not distorted by
inflation.
As you analyze your own firm’s personnel management, keep in mind that these ratios will be impacted depending
on the extent to which outside contractors are used, which are typically not counted as employees.
Asset turnover (total revenues divided by total assets) presents a good overall indicator of total company
productivity. The ratio tells us how many dollars in revenues are being generated by each dollar of assets employed
in running the business.
Financial Management There are two financial management issues of primary importance to industry firms--liquidity and leverage. Liquidity
represents the short-term financial strength of the firm. It is your ability to meet short-term obligations out of currently
available funds. Two liquidity measures very commonly used are the current ratio and the quick ratio.
Current Ratio (current assets divided by current liabilities)—This measures the extent to which fairly liquid assets
(all current assets) exceeds current debt.
Quick (acid-test) Ratio (current assets less inventory divided by current liabilities)—This ratio eliminates inventory
from the numerator because it is not extremely liquid, and compares the result to current debt. Therefore,
the quick ratio is often considerably lower than the current ratio.
Leverage is merely the extent to which a company is financed by debt as opposed to the owners' funds. It is the
amount of liabilities in relation to the amount of net worth. A common ratio of overall company leverage is the Debt
Ratio. This is defined as total liabilities divided by net worth, or owner’s equity. The higher this ratio is, the higher
the leverage.
Improving Performance Based on the Overall Performance Measures It is very important to remember that while the key performance measures discussed above are excellent "yardsticks"
for gauging the success of your business, they must be understood, not just applied blindly. For instance, if the
profitability of your firm is far below the industry norm, it is important to know why. Is your business really suffering
or is your profitability artificially low because you are paying high salaries? With this warning in mind, let us
examine some of the key performance measures and some possible actions that can be taken if you deviate
significantly from the industry average. The following are only guidelines for action and should not be considered to
be specific recommendations.
Introduction
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Profitability
Net Profit Margin
Too Low Further investigation is warranted. Check to see if pricing policies are too low. If so,
check pricing by activity. Check all expenses to see which need better control.
Too High It is difficult to imagine a situation where this presents a problem, but you should know
why the net profit margin is so high.
Return on Assets
Too Low Either revenues or net profit before taxes is too low to support your asset structure.
Examination of net profit before taxes value and asset turnover will tell which.
Too High No problem as a rule. You are effectively managing your business.
Return on Net Worth
Too Low If return on assets is sufficient, you may have more of your funds invested in the
business than necessary (see Leverage).
Too High This is a very good situation unless the degree of leverage is too high.
Productivity
Personnel Productivity
Too Low Low personnel productivity during normal business conditions may indicate the business
is too “people heavy.” Consider decreasing staff size or generating more volume from
existing personnel.
Too High No problem as a rule. May be artificially high if many functions are performed by
outsiders not on the payroll.
Total Asset Productivity
Too Low Low asset turnover can signal a need for more attention to the productivity of the
areas described above. However, if you own rather than rent the majority of your
locations, this could explain the deviation from typical industry figures.
Too High Asset turnover that is significantly in excess of the industry norm might be caused by
the absence of owned fixed assets or the lack of any significant amount of receivables.
Check your percentage balance sheet with the composite for your type of dealership.
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Financial Management
Liquidity
Too Low If the current ratio is too low, it is possible you are operating with insufficient liquid
capital. This can be dangerous if business takes a turn for the worse or a loan
payment becomes due unexpectedly. Liquidity can be increased by using more long-
term financing and/or by leaving more profits in the business.
Too High If liquidity is exceptionally high, it is possibly a sign of excess current assets, such as
receivables. Check productivity ratios for these items. Otherwise, this is no reason for
concern.
Debt Ratio
Too Low You have excess capacity for debt should it become necessary to borrow. Although
some owners do not like borrowing any more than absolutely necessary, additional
debt will increase overall profitability as long as the business can earn a before tax
return which exceeds the borrowing rate.
Too High This will severely curtail your ability to attract new borrowed funds. In addition,
interest charges could be strongly affecting profitability. Try to retain more profits in
the business or attract new sources of equity if you wish to lower leverage.
Summary and Conclusions We believe the information contained in the NOPA Dealer Financial Comparison and Benchmarking Guide to be
the most comprehensive compilation of industry performance statistics in existence. While the quantity of information
may, at first, seem overwhelming, by following the approach outlined in the preceding pages, your time and efforts
can be channeled into a very effective and beneficial analysis. To summarize:
Step 1—Gather all your financial, operating, and sales figures for your latest fiscal year. If you participated in this
year’s study, this has already been done for you.
Step 2—Calculate the various performance measures for your company that are used in the report. Start with the
“Overall Profitability Measures.” (If you participated in the survey and filled out the survey form
completely, most of the calculations have already been made for you.)
Step 3—Determine which data comparisons in this report are most comparable to your company.
Step 4—Use the information in this report to analyze your company’s strengths and weaknesses.
Even a relatively simple analysis of your company’s own figures using the data for comparisons can yield important
insights into your business. You do not have to be a financial expert to benefit from this information.
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E X E C U T I V E S U M M A R Y
Executive Summary
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E X E C U T I V E S U M M A R Y
R E S P O N D E N T P R O F I L E The following charts are shown to help users of the report better identify with the participating companies.
COMPANY TYPE (% OF ALL RESPONDENTS)
TOTAL REVENUES (% OF ALL RESPONDENTS)
Average: $11,276,278
Median: $6,483,957
Commercial Dealer with No Retail Stores,
54.6%
Commercial Dealer with
Retail Stores, 42.4%
Other, 3.0%
Under $5 Million, 39.1%
$5 - $10 Million, 30.4%
Over $10 Million, 30.4%
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SIZE OF PRIMARY MARKET AREA SERVICED (% OF ALL RESPONDENTS)
PRIMARY BUSINESS STRUCTURE (% OF ALL RESPONDENTS)
500,000 or Less, 40.6%
Over 500,000, 59.4%
S Corporation, 60.6%
C Corporation, 24.2%
Limited Liability Corp (LLC), 9.1%
Other, 6.1%
Executive Summary
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NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES (% OF ALL RESPONDENTS)
AVERAGE STAFF SIZE OF COMMERCIAL ACCOUNTS (% OF ALL RESPONDENTS)
Under 15, 38.7%
15 - 30, 22.6%
Over 30, 38.7%
Less Than 10 Staff, 21.9%
10 to 50 Staff, 56.3%
51 to 100 Staff, 15.6%
Greater than 100 Staff, 6.3%
Executive Summary
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MARKET MIX (% OF TOTAL SALES)
PERCENT OF EACH CATEGORY SALES ARE FROM INTERNET SALES? (% OF TOTAL SALES)
0.7%
1.2%
11.5%
8.0%
13.1%
31.3%
34.2%
Other
SoHo
Education
Healthcare
Government
Small Business
Commercial/Contract
53.0%
21.0%
10.0%
35.2%
60.0%
63.5%
64.5%
66.0%
Total Sales
Other Products
Furniture & Accessories
Office Equipment, Business Machines, &Supplies
Coffee/Breakroom
Computer Hardware, Software, & Supplies
Janitorial/Warehouse
Office Supplies
Executive Summary
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O V E R A L L P R O F I T A B I L I T Y RETURN ON ASSETS
A good overall indicator of company profitability performance is the ratio “net profit before taxes as a percent of
total assets,” or “return on assets,” as it is often labeled. Essentially, this provides an indication of what bottom line
profit return is being earned on the dollars invested in total assets.
The typical dealers’ return on assets performance during 2016 was 10.9% for the year. As shown below, the most
profitable dealers experienced a 16.7% return. The smallest dealers, based on dollars of total revenues, reported
the lowest return on assets figure (5.3%) of any of the revenue aggregates.
10.9%
16.7%
6.5%
14.9%
5.3%
16.7%
5.5%
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
Return on Assets—Indicates the
profit earned as a percent of
total assets.
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RETURN ON NET WORTH
The typical dealer experienced a 22.3% return on net worth during 2016, while the high profit dealers reported
38.3%. Versus the typical respondent, the larger value for the profit leaders is primarily driven by their larger net
profit before taxes value.
OPERATING PROFIT (% OF TOTAL REVENUES)
In 2016 the typical respondent saw an operating profit of 0.6%, while the high profit dealers had an operating
margin of 5.0%. The dealers with revenues of $5 to $10 million reported the highest operating margin of all
revenue groupings with 2.3%.
22.3%
38.3%
19.2% 18.8% 18.1%
44.6%
12.6%
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
0.6%
5.0%
-1.0%
2.5%1.2%
2.3%
-2.3%All Dealers High Profit
DealersNo Retail
StoresRetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
Operating Profit—Measures
profitability after the costs of
making or buying the product
is subtracted from sales and
other income generating
activities. It is a useful ratio to
measure your company’s
pricing strategy and efficiency
of your operations.
Return on Net Worth—
Indicates the profit earned as a
percent of net worth (or
owner’s equity). It is
determined by dividing Net
Profit Before Taxes by Net
Worth.
Executive Summary
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EBDIT (EARNINGS, OR NET PROFIT, BEFORE TAXES, DEPRECIATION, AND INTEREST)
The typical respondent experienced a 3.4% EBDIT in 2016. The high profit dealers, as expected, reported a higher
overall EBDIT (6.2%).
GROSS PROFIT – PRODUCTS AS A % OF TOTAL PRODUCT SALES An analysis of gross profit specific to product sales reveals that the mid-size companies, in terms of total revenues, experienced the highest overall margins (28.6%). Additionally, the largest companies generally experienced lower margins on product sales at 24.3%.
3.4%
6.2%
2.7%
4.4%
2.2%
5.6%
2.7%
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
27.3% 28.4% 26.9% 27.8% 28.2% 28.6%24.3%
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
EBDIT— Is an overall measure
of a company’s financial
performance before taxes,
depreciation, and interest on
debts.
Gross Profit (Products)— Is an
overall measure of profits
earned on products sales after
the cost of product sales is
removed.
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NET PROFIT BEFORE TAXES (% OF TOTAL REVENUES)
The typical respondent experienced a net profit before taxes of 2.6% in 2016. The profit leaders, as expected,
reported higher profits with a net profit before taxes of 5.4%.
TOTAL REVENUE GROWTH (% CHANGE FROM PRIOR YEAR)
Monitoring sales growth is important, since it often drives a company’s performance and its ability to achieve profits.
As shown, the typical NOPA survey respondent reported a 0.9% decrease in revenues during 2016 as compared to
2015. Surprisingly, the typical high profit group firm experienced 1.7% decrease in total revenues. Among the
various revenue groups, the highest revenue gains were reported among the dealers with over $10 million in
revenues (3.6%).
2.6%
5.4%
2.0%
3.3%
1.4%
4.6%
1.9%
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
-0.9% -1.7% -0.9%
0.5%
-9.6%
-1.7%
3.6%
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
Sales Growth—The increase in
net sales from one period over
another. It is calculated by
determining the difference of
current year net sales and prior
year net sales and dividing that
value by prior year net sales.
Net Profit Before Taxes— Is an
overall measure of profits
earned as a percent of sales
before taxes are expensed.
Executive Summary
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E X P E N S E M A N A G E M E N T
The following tables summarize the key income statement findings of this year’s report. An important finding of this
NOPA study is that industry firms that were the most profitable in 2016 derived a significant portion of their
profitability advantage from lower operating costs along with higher gross profit levels. As shown in the chart below,
while all responding dealers overall reported total operating expenses of 29.7% of revenues, the high profit dealers
experienced operating costs of only 27.5% of revenues yielding a 5.0% operating profit.
KEY INCOME STATEMENT ITEMS AS A PERCENT OF TOTAL REVENUES*
All Dealers
High Profit
Dealers
Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
Million
Total Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Total Cost of Sales 69.7% 67.5% 72.3% 66.8% 70.5% 67.4% 71.3%
Total Gross Profit - Products &
Services 30.3% 32.5% 27.7% 33.2% 29.5% 32.6% 28.7%
Total Warehouse/Delivery/ 8.1% 8.6% 8.2% 8.3% 6.6% 7.8% 10.9%
Installation Expense
Total Selling Expenses 9.5% 7.5% 10.1% 8.8% 8.9% 9.8% 10.1%
Total Occupancy Expenses 2.0% 2.2% 1.4% 2.6% 2.2% 2.4% 1.3%
Total Office Expenses 3.9% 3.1% 3.8% 4.0% 4.5% 3.5% 3.3%
Total Administrative Expenses 6.2% 6.1% 5.2% 7.0% 6.1% 6.9% 5.5%
Total Operating Expenses 29.7% 27.5% 28.7% 30.7% 28.3% 30.4% 31.0%
Operating Profit 0.6% 5.0% -1.0% 2.5% 1.2% 2.3% -2.3%
Total Other Expenses 0.5% 0.6% 0.5% 0.5% 0.4% 0.5% 0.5%
Total Other Income 2.4% 1.0% 3.5% 1.3% 0.6% 2.8% 4.7%
Net Profit before Taxes 2.6% 5.4% 2.0% 3.3% 1.4% 4.6% 1.9%
*Some items may not total due to rounding.
Executive Summary
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I N V E N T O R Y M A N A G E M E N T
This section provides a look at key inventory related metrics. As shown in the graphs below, the typical dealer turned
their inventories 22.7 times during the year and needed 16 days to convert inventory to revenue. Additionally,
dealers reported a 29.8 product sales to inventory ratio.
INVENTORY TURNOVER
INVENTORY TURNOVER DAYS
22.7
13.1
29.1
10.7
28.1
15.318.3
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
16
28
13
34
13
24 23
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
Inventory Turnover— Inventory
productivity is best measured
by inventory turnover, defined
as the cost of goods sold
divided by average inventory.
This ratio shows how rapidly
inventory is moving. Inventory
turnover is expressed as
“annual turns.”
Inventory Turnover Days— This
metric is used to calculate how
quickly a company is
converting their inventory to
revenue in days.
Executive Summary
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PRODUCTS SALES TO INVENTORY
P E R S O N N E L A N D A C C O U N T S R E C E I V A B L E M A N A G E M E N T
Although expense management and bottom line profit margins on revenues are important components of overall
profitability, certainly personnel management and receivables management are also very important.
As shown in the charts below and on the following pages the high profit dealers performed better than all
respondents in general. The high profit dealers outperformed the typical respondent in terms net profit per
employee and total employee compensation expense as a percent of total revenues.
TOTAL REVENUES PER EMPLOYEE (EXCLUDING WAREHOUSE, DELIVERY, AND INSTALLATION EMPLOYEES)
29.8
18.5
40.0
15.1
39.6
21.1 23.1
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
$383,156$297,413
$370,512 $346,607$246,739
$423,452
$612,422
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
Total Revenues per
employee— Is an overall
employee productivity measure;
calculated as average revenues
generated per full-time
equivalent employee exclusive
of warehouse, delivery, and
installation employees.
Product Sales to Inventory—
Defined as total product sales
divided by inventory, this
measure is used to effectively
gauge how much product
revenue is generated per dollar
of inventory.
Executive Summary
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NET PROFIT BEFORE TAXES PER EMPLOYEE (EXCLUDING WAREHOUSE, DELIVERY, AND INSTALLATION EMPLOYEES)
TOTAL EMPLOYEE COMPENSATION EXPENSE AS A % OF TOTAL REVENUES
AVERAGE COLLECTION PERIOD (DAYS)
$9,934
$13,130$10,822 $10,830
$1,339
$13,130 $11,949
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
17.3%15.8%
17.8% 16.7% 16.0%17.7% 18.8%
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
29 30 29 30 29 2835
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
Net Profit before Taxes per
employee— Is an overall
employee productivity measure;
calculated as average net
profits before taxes generated
per full-time equivalent
employee exclusive of
warehouse, delivery, and
installation employees.
Total Employee Compensation
Expense—Measures the
amount of dollars being spent
on funding staff. This value,
shown as a percent of total
revenues, is imperative for all
businesses to monitor.
Average Collection Period—
Also sometimes called “days
receivables outstanding.”
Measures the average days
between sales and receipt of
customer payment. This
measure is an indication of
effectiveness of credit and
collection policies.
Executive Summary
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O T H E R P E R F O R M A N C E I N D I C A T O R S
Also included in this year’s NOPA Dealer Financial Comparison and Benchmarking Guide are important asset
management, liquidity, and key warehouse/delivery performance measures. The following charts highlight these
indicators.
Asset Management ASSET TURNOVER
The typical respondent reported an asset turnover of 4.0 for fiscal year 2016, while the high profit dealers grouping
reported a turnover of 4.6. Those with total revenues under $5 million reported the highest turnover ratio (4.6 turns),
effectively using their assets to generate 4.6 times more sales than assets.
DEBT RATIO
Overall, respondents reported a debt ratio of 1.2 in 2016. The high profit dealers were similarly leveraged to the
typical respondent also reporting a leverage ratio of 1.2. Those in the over $10 million revenue grouping indicated
the smallest debt ratio of 0.9 while the companies in the $5 to $10 million category were the most leveraged (1.7).
4.04.6
3.84.4 4.6
3.8 3.7
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
1.2 1.2 1.21.4
1.1
1.7
0.9
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
Asset Turnover—(net sales
divided by total assets)
presents a good overall
indicator of total company
productivity. The ratio tells us
how many sales dollars are
being generated by each dollar
of assets employed in running
the business.
Debt Ratio—Measures the
extent to which a company is
financed by debt as opposed
to the owners’ funds. It is the
amount of liabilities in relation
to the amount of net worth on
the right hand side of the
balance sheet.
Executive Summary
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Liquidity
Liquidity represents the short-term financial strength of an organization. It is a company’s ability to meet short-term
obligations out of currently available funds. The two most commonly used measures of liquidity are the current ratio
and quick ratio. The current ratio is calculated by dividing current assets by current liabilities. The quick ratio is
calculated in the same manner as the current ratio but removes inventory from current assets before dividing by
current liabilities.
CURRENT RATIO
QUICK RATIO
1.81.5
1.71.5 1.4
1.1
1.9
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
1.41.1
1.4
1.1 1.10.9
1.4
All Dealers High ProfitDealers
No RetailStores
RetailStores
Under $5Million
$5-10Million
Over $10Million
Dealers with... Total Revenues
Current Ratio—Measures
liquidity. It indicates a firm’s
ability to pay short-term debt
with funds (assets) currently
available.
Quick Ratio—Measures the
ability to pay short-term debt
with assets that can be
converted to cash most quickly.
Executive Summary
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Key Warehouse/Delivery Performance Measures
All Dealers
High Profit
Dealers
Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
Million
Office Product SKUs Stocked 350.0 900.0 300.0 1,000.0 364.0 900.0 312.5
Number of SKUs Shipped Annually 13,600.0 20,000.0 12,350.0 13,200.0 14,000.0 25,000.0 21,890.0
Deliveries per Day 60.0 51.0 70.0 50.0 30.0 125.0 320.0
Delivery Schedule Achievement (%
on time and correct) 98.0% 97.5% 97.0% 98.0% 97.0% 98.0% 98.2%
Average Lead Time (Days) 1.0 1.1 1.0 1.0 1.1 1.0 1.0
Orders per Month 1,330.0 850.0 1,330.0 1,000.0 825.0 2,116.0 6,511.0
Lines (SKUs) Pulled per Hour 65.0 42.5 126.5 35.0 35.0 * 140.0
Order Fill Rate 98.0 98.0 98.0 97.0 98.0 98.5 98.2
Lines (SKUs) per Order 4.2 5.0 4.2 4.5 6.0 4.4 4.0
An asterisk (*) notation indicates an insufficient sample to show meaningful results
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D E T A I L E D I N F O R M A T I O N
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B Y A L L R E S P O N D E N T S , D E A L E R T Y P E , A N D T O T A L R E V E N U E S
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D E T A I L E D I N F O R M A T I O N
B Y A L L R E S P O N D E N T S , D E A L E R T Y P E , A N D T O T A L R E V E N U E S
Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
SUMMARY INCOME STATEMENT-% OF TOTAL REVENUES
Product Sales as a % of Total Revenues:
Office Equipment, Business Machines, & Supplies 11.38% 14.88% 4.76% 8.66% 13.05% 13.49%
Computer Hardware, Software, & Supplies 7.15% 9.46% 5.31% 8.05% 8.86% 3.79%
Furniture & Accessories 30.67% 16.72% 44.76% 20.99% 38.91% 35.57%
Office Supplies 33.05% 43.77% 24.57% 41.42% 24.71% 30.24%
Janitorial/Warehouse 4.93% 5.72% 4.55% 7.10% 2.41% 4.63%
Coffee/Breakroom 1.87% 2.73% 1.12% 1.70% 0.88% 3.30%
Other Products 5.27% 5.35% 5.70% 8.35% 3.32% 2.90%
Total Product Sales 94.32% 98.63% 90.78% 96.28% 92.15% 93.91%
Services Revenues as a % of Total Revenues:
Delivery & Installation (incl. Services 3.06% 1.02% 5.60% 0.50% 4.52% 5.19%
& Intermarket)
Print/Fax/Copy Services 1.08% 0.24% 0.33% 0.44% 2.66% 0.19%
Equipment Maintenance Contracts 1.02% 0.07% 2.16% 2.45% 0.00% 0.05%
Other Services Revenue 0.53% 0.03% 1.13% 0.33% 0.67% 0.66%
Total Services Revenues 5.68% 1.37% 9.22% 3.72% 7.85% 6.09%
Total Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total Cost of Sales 69.72% 72.33% 66.81% 70.50% 67.40% 71.26%
Total Gross Profit Product & Services 30.28% 27.67% 33.19% 29.50% 32.60% 28.74%
EXPENSES
Warehouse, Delivery & Installation Expenses:
Compensation-Warehouse, Delivery, 4.47% 4.67% 4.44% 3.93% 4.41% 5.36%
Installation Staff
Outside Labor 0.69% 0.18% 1.31% 0.00% 0.94% 1.42%
Vehicle Expense 0.93% 0.94% 0.90% 0.84% 1.01% 0.99%
Outside Cartage 0.86% 1.47% 0.21% 0.82% 0.53% 1.31%
Warehouse Utilities 0.11% 0.07% 0.16% 0.10% 0.16% 0.05%
Warehouse Rent/Lease 0.63% 0.61% 0.71% 0.63% 0.13% 1.22%
Depreciation, Warehouse 0.04% 0.00% 0.08% 0.00% 0.11% 0.01%
Depreciation, Equipment 0.01% 0.01% 0.00% 0.00% 0.00% 0.03%
Depreciation, Warehouse Vehicles 0.23% 0.19% 0.27% 0.23% 0.16% 0.30%
Other WD&I Expenses 0.16% 0.08% 0.23% 0.02% 0.33% 0.16%
Total Warehouse/Delivery/Installation Expenses 8.13% 8.24% 8.31% 6.58% 7.78% 10.85%
Detailed Information
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Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
Selling Expenses:
Compensation-Sales Managers 1.19% 1.11% 1.39% 1.67% 0.76% 0.97%
Compensation-Outside Sales 4.73% 4.87% 4.52% 4.10% 5.29% 5.02%
Compensation-Inside Sales/Telemarketing 0.61% 0.82% 0.43% 0.79% 0.60% 0.33%
Compensation-Sales Support 0.58% 0.66% 0.54% 0.41% 0.43% 1.00%
Compensation-Customer Service/Order Entry 1.02% 1.19% 0.53% 0.51% 1.31% 1.46%
Compensation-Marketing 0.09% 0.09% 0.10% 0.00% 0.12% 0.17%
Automobile Expenses 0.26% 0.30% 0.19% 0.30% 0.30% 0.16%
Advertising & Promotion 0.56% 0.49% 0.67% 0.80% 0.42% 0.39%
Travel & Entertainment 0.15% 0.14% 0.15% 0.18% 0.10% 0.15%
Other Sales Expenses 0.33% 0.39% 0.28% 0.17% 0.43% 0.44%
Total Selling Expenses 9.51% 10.07% 8.80% 8.91% 9.77% 10.09%
Occupancy Expenses:
Retail/Office-Rent/Lease 1.24% 0.82% 1.57% 1.38% 1.43% 0.83%
Retail/Office-Utilities 0.20% 0.23% 0.15% 0.24% 0.24% 0.11%
Janitorial and Maintenance 0.17% 0.11% 0.21% 0.13% 0.24% 0.16%
Depreciation, Retail/Office 0.08% 0.10% 0.07% 0.10% 0.09% 0.04%
Property Taxes 0.15% 0.05% 0.28% 0.08% 0.31% 0.08%
Other Occupancy Expenses 0.16% 0.04% 0.30% 0.29% 0.07% 0.05%
Total Occupancy Expenses 2.01% 1.35% 2.60% 2.21% 2.38% 1.27%
Office Expenses:
Compensation--Office Staff 1.96% 1.77% 2.23% 2.25% 1.67% 1.88%
Office Supplies/Stationery 0.20% 0.14% 0.27% 0.23% 0.19% 0.17%
Computer Supplies 0.06% 0.03% 0.03% 0.02% 0.16% 0.02%
Non-capitalized Computer Equipment 0.13% 0.25% 0.01% 0.30% 0.00% 0.02%
Computer S/W Upgrades and Licenses 0.53% 0.75% 0.34% 0.57% 0.42% 0.60%
Depreciation-Furniture/Fixtures/Equipment 0.09% 0.05% 0.14% 0.06% 0.12% 0.10%
Depreciation-Computer H/W & S/W 0.09% 0.11% 0.06% 0.05% 0.13% 0.10%
Equipment Leases and Maintenance 0.19% 0.04% 0.38% 0.36% 0.10% 0.04%
Telecommunications Expenses 0.24% 0.19% 0.31% 0.24% 0.28% 0.22%
Postage 0.11% 0.07% 0.13% 0.15% 0.10% 0.06%
Other Office Expenses 0.27% 0.43% 0.12% 0.31% 0.33% 0.16%
Total Office Expenses 3.88% 3.82% 4.01% 4.53% 3.50% 3.34%
Detailed Information
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Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
Administrative Expenses:
Compensation-Officers/Owners/General Managers 2.67% 2.64% 2.55% 2.35% 3.13% 2.61%
Pension/Profit Sharing Contributions 0.28% 0.18% 0.42% 0.20% 0.24% 0.45%
Outside Labor 0.02% 0.04% 0.00% 0.04% 0.00% 0.02%
Depreciation, Vehicles 0.08% 0.01% 0.16% 0.16% 0.03% 0.02%
Vehicles Expense 0.17% 0.17% 0.20% 0.29% 0.14% 0.05%
Bad Debts -0.07% 0.07% -0.17% 0.07% -0.37% 0.07%
Amortization Expenses 0.11% 0.20% 0.03% 0.01% 0.17% 0.19%
Insurance-Property & Liability 0.37% 0.37% 0.39% 0.31% 0.41% 0.41%
Insurance-Health 0.79% 0.59% 0.79% 0.61% 1.10% 0.70%
Professional Services 0.34% 0.35% 0.29% 0.27% 0.52% 0.25%
Travel and Entertainment 0.14% 0.10% 0.20% 0.14% 0.20% 0.08%
Training Expenses 0.02% 0.03% 0.01% 0.04% 0.02% 0.01%
Other Taxes & Penalties 0.62% 0.14% 1.19% 1.02% 0.57% 0.08%
Other Administrative Expenses 0.64% 0.33% 0.94% 0.62% 0.76% 0.54%
Total Administrative Expenses 6.20% 5.22% 7.01% 6.11% 6.92% 5.47%
Total Operating Expenses 29.71% 28.70% 30.73% 28.34% 30.35% 31.03%
Operating Profit 0.57% -1.03% 2.47% 1.16% 2.25% -2.29%
Other Expenses:
Cash Discounts Allowed 0.07% 0.07% 0.08% 0.00% 0.00% 0.27%
Interest Expenses 0.25% 0.26% 0.26% 0.19% 0.36% 0.21%
Miscellaneous Expenses 0.12% 0.15% 0.11% 0.17% 0.10% 0.06%
Total Other Expenses 0.45% 0.48% 0.45% 0.36% 0.47% 0.54%
Other Income:
Discounts Earned 0.34% 0.30% 0.41% 0.05% 0.57% 0.49%
Interest Earned 0.04% 0.01% 0.07% 0.00% 0.10% 0.01%
Incentive Programs 1.75% 2.96% 0.60% 0.27% 1.73% 4.00%
Miscellaneous Other Income 0.31% 0.20% 0.22% 0.31% 0.39% 0.20%
Total Other Income 2.43% 3.46% 1.30% 0.63% 2.80% 4.70%
Net Profit Before Taxes 2.55% 1.95% 3.32% 1.43% 4.58% 1.87%
Detailed Information
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Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
BALANCE SHEET INFORMATION AS A % OF TOTAL ASSETS
Assets
Cash & Short-Term Investments 12.9% 10.7% 16.0% 13.1% 15.9% 12.2%
Accounts Receivable 36.9% 35.2% 33.9% 28.7% 35.9% 43.7%
Notes Receivable 1.7% 1.1% 2.4% 0.2% 4.2% 1.0%
Inventory 20.8% 19.2% 24.5% 26.2% 16.7% 19.8%
Prepayments & Deferred Charges 1.0% 1.6% 0.5% 0.2% 1.5% 1.6%
Other Current Assets 1.3% 1.0% 1.0% 0.0% 2.0% 0.8%
Total Current Assets 74.5% 68.8% 78.3% 68.4% 76.3% 79.1%
Land 1.9% 2.0% 2.1% 0.0% 1.7% 5.1%
Building-Net 1.8% 1.4% 2.4% 1.4% 3.1% 1.1%
Autos & Trucks-Net 6.8% 8.1% 6.0% 9.0% 4.0% 7.0%
Furniture & Fixtures-Net 2.3% 1.4% 3.5% 3.4% 2.4% 0.8%
Computer & Data Processing Equipment-Net 1.6% 1.3% 2.1% 2.6% 1.2% 0.9%
Leasehold Improvements-Net 3.0% 2.4% 4.0% 2.6% 4.0% 1.9%
Other Fixed Assets 1.7% 3.2% 0.3% 0.0% 4.1% 1.4%
Total Fixed Assets 19.1% 19.8% 20.2% 19.1% 20.6% 18.1%
Long-Term Investments 1.2% 2.2% 0.2% 2.5% 0.6% 0.3%
Other Long-Term Assets 5.2% 9.3% 1.3% 10.1% 2.5% 2.6%
Total Other Long-Term Assets 6.4% 11.5% 1.6% 12.6% 3.1% 2.9%
Total Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Liabilities
Accounts Payable 26.4% 27.8% 22.7% 32.7% 19.8% 25.5%
Customer Deposits 4.9% 6.3% 3.6% 6.8% 5.0% 2.9%
Notes Payable 7.3% 4.4% 11.3% 8.3% 7.8% 6.6%
Accrued Salaries & Commissions 3.4% 3.3% 3.4% 2.1% 1.8% 7.5%
Accrued Taxes 1.7% 1.1% 2.5% 1.7% 2.1% 1.5%
Other 4.8% 5.9% 4.1% 3.4% 8.5% 2.5%
Total Current Liabilities 48.5% 48.8% 47.6% 55.1% 44.9% 46.5%
Notes Payable 15.9% 22.8% 9.8% 26.4% 8.8% 9.2%
Long-Term Debt 2.9% 0.4% 5.9% 2.2% 3.9% 3.0%
Other Long-Term Liabilities 2.0% 3.2% 0.9% 2.9% 0.0% 3.5%
Total Long-Term Liabilities 20.8% 26.4% 16.7% 31.4% 12.7% 15.7%
Total Liabilities 69.3% 75.2% 64.2% 86.5% 57.6% 62.2%
Net Worth or Stockholder’s Equity
Total Net Worth or Stockholder's Equity 30.7% 24.8% 35.8% 13.5% 42.4% 37.8%
Total Liabilities and Net Worth 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Detailed Information
NOPA D E A L E R F I N A N C I A L C O M P A R I S O N A N D B E N C H M A R K I N G G U I D E
37
Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
OVERALL PROFITABILITY MEASURES
Net Profit Before Tax-% of Total Revenues 2.55% 1.95% 3.32% 1.43% 4.58% 1.87%
Net Profit Before Tax-% of Total Assets 10.94% 6.53% 14.94% 5.27% 16.66% 5.52%
Net Profit Before Tax-% of Net Worth 22.26% 19.15% 18.81% 18.12% 44.61% 12.57%
Net Profit Before Interest & Tax -% of Assets 11.00% 6.77% 14.95% 6.00% 16.66% 6.50%
EBDIT (i.e., Earnings, or Net Profit, Before 3.41% 2.69% 4.36% 2.22% 5.58% 2.68%
Taxes, Depreciation and Interest as a % of
Total Revenues)
Operating Profit-% of Total Revenues 0.57% -1.03% 2.47% 1.16% 2.25% -2.29%
Gross Profit-Product-% of Total Product Sales 27.25% 26.86% 27.79% 28.22% 28.57% 24.27%
REVENUES SUMMARY
Average Total Product & Services Revenues $11,276,278 $14,892,949 $7,089,963 $2,206,275 $7,701,281 $26,512,708
Percent Change in Revenues from Prior Year
Total Product Sales -0.89% -0.89% 0.53% -9.57% -1.76% 3.42%
Total Services Revenues 0.45% 23.12% 0.45% * -6.25% 30.77%
Total Revenues Overall -0.89% -0.89% 0.52% -9.57% -1.72% 3.57%
OVERALL ASSET MANAGEMENT SUMMARY
Total Revenues/Total Assets (Asset Turnover) 4.0 3.8 4.4 4.6 3.8 3.7
Total Revenues/Net Fixed Assets (Fixed Asset 33.5 28.1 38.6 54.9 21.4 28.2
Turnover)
RECEIVABLES MANAGEMENT
Average Collection Period (i.e., Days 29 29 30 29 28 35
Receivables Outstanding)
FINANCIAL MANAGEMENT MEASURES
Interest Expense as a % of Total Revenues 0.25% 0.26% 0.26% 0.19% 0.36% 0.21%
Current Ratio (Current Assets/Current Liab.) 1.8 1.7 1.5 1.4 1.1 1.9
Acid Test (or Quick) Ratio (Cash + Accounts 1.4 1.4 1.1 1.1 0.9 1.4
Receivable/Current Liabilities)
Current Liabilities/Net Worth 1.0 0.7 1.1 0.6 1.5 0.9
Current Liabilities/Inventory 2.3 2.9 2.2 2.2 2.4 2.0
Total Liabilities/Net Worth 1.2 1.2 1.4 1.1 1.7 0.9
Fixed Assets/Net Worth 0.3 0.3 0.3 0.3 0.6 0.3
Total Revenues/Net Worth 7.3 7.0 7.3 7.0 13.5 7.3
Total Revenues/Net Working Capital (i.e., CA-CL) 9.2 7.5 8.2 6.6 32.6 9.4
Inventory/Net Working Capital 0.3 0.2 0.5 0.3 0.3 0.4
Days Payables Outstanding 32 31 29 34 32 27
Customer Deposits-% of Total Revenues 0.4% 0.0% 1.4% 1.0% 0.6% 0.1%
Detailed Information
NOPA D E A L E R F I N A N C I A L C O M P A R I S O N A N D B E N C H M A R K I N G G U I D E
38
Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
INVENTORY MANAGEMENT SUMMARY
Inventory Turnover (COGS/Average Inventory) 22.7 29.1 10.7 28.1 15.3 18.3
Inventory Turnover Days (365/Inventory Turnover) 16 13 34 13 24 23
Average Number of Days to Convert Inventory 48 42 74 40 50 81
To Cash (Average Inventory/(COGS/365)
Product Sales to Inventory 29.8 40.0 15.1 39.6 21.1 23.1
WAREHOUSE/DELIVERY PERFORMANCE MEASURES
Number of Office Product SKUs Stocked 350.0 300.0 1,000.0 364.0 900.0 312.5
Number of SKUs Shipped Annually 13,600.0 12,350.0 13,200.0 14,000.0 25,000.0 21,890.0
Deliveries per Day 60.0 70.0 50.0 30.0 125.0 320.0
Delivery Schedule Achievement (% on time and 98.0% 97.0% 98.0% 97.0% 98.0% 98.2%
correct)
Average Lead Time (Days) 1.0 1.0 1.0 1.1 1.0 1.0
Orders per Month 1,330.0 1,330.0 1,000.0 825.0 2,116.0 6,511.0
Average Order Size $216.1 $202.1 $394.4 $198.7 $321.6 $228.0
Lines (SKUs) Pulled per Hour 65.0 126.5 35.0 35.0 * *
Order Fill Rate 98.0 98.0 97.0 98.0 98.5 98.2
Lines (SKUs) per Order 4.2 4.2 4.5 6.0 4.4 4.0
PERSONNEL MANAGEMENT SUMMARY
Total Employee Compensation Expense 17.3% 17.8% 16.7% 16.0% 17.7% 18.8%
as a % of Total Revenues
Total Outside Labor Cost 0.7% 0.2% 1.3% 0.0% 0.9% 1.4%
as a % of Total Revenues
Delivery & Installation Revenue Per $20,289 $6,133 $42,379 $2,879 $31,520 $48,357
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Total Revenues Per:
Sales Management Employee $6,480,563 $6,480,418 $6,477,168 $1,727,170 $6,483,957 $12,733,930
Outside Sales Employee $1,468,311 $1,620,989 $1,121,728 $863,585 $1,620,989 $1,824,385
Inside Sales/Telemarketing Employee $7,592,134 $8,826,111 $5,429,684 * * $14,299,594
Customer Service/Sales Support Employee $1,755,057 $1,539,928 $2,235,259 $794,546 $2,275,855 $2,088,198
Total Sales Staff Employee $589,972 $563,822 $572,543 $380,041 $809,646 $816,067
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Delivery Staff Employee $1,412,825 $1,240,918 $2,025,640 $1,168,798 $1,820,684 $2,504,492
Installation Staff Employee $2,275,855 $5,832,795 $1,676,444 $1,478,023 $2,275,855 $4,213,611
Warehouse Staff Employee $3,503,035 $3,499,677 $3,952,299 $1,804,600 $4,551,710 $3,611,216
Total Delivery & Installation Staff Employee $784,114 $864,528 $595,183 $876,599 $758,618 $796,288
Detailed Information
NOPA D E A L E R F I N A N C I A L C O M P A R I S O N A N D B E N C H M A R K I N G G U I D E
39
Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
Total Revenues Per: (continued)
Office & Administration Staff Employee $1,038,551 $1,080,660 $1,164,631 $863,585 $1,080,660 $2,070,737
All Employees Overall $259,728 $272,065 $236,466 $172,717 $260,098 $336,273
All Employees (Excluding Warehouse, $383,156 $370,512 $346,607 $246,739 $423,452 $612,422
Delivery, and Installation Employees)
Net Profit Before Tax Per:
Sales Management Employee $169,544 $95,357 $227,050 $6,918 $189,383 $243,610
Outside Sales Employee $31,735 $40,314 $31,735 $4,688 $61,906 $32,972
Inside Sales/Telemarketing Employee $197,202 $98,151 $241,638 * * $282,201
Customer Service/Sales Support Employee $40,314 $33,250 $75,495 $4,073 $75,044 $40,660
Total Sales Staff Employee $14,293 $16,468 $14,763 $1,875 $28,760 $14,849
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Delivery Staff Employee $37,699 $37,522 $60,350 $34,335 $37,877 $35,093
Installation Staff Employee $65,892 $65,892 $18,091 $11,709 $75,495 $46,025
Warehouse Staff Employee $67,620 $49,419 $176,093 $3,459 $150,990 $39,786
Total Delivery & Installation Staff Employee $16,253 $16,349 $18,305 $3,857 $25,165 $12,935
Office & Administration Staff Employee $26,511 $28,863 $27,155 $4,688 $28,863 $40,962
All Employees Overall $6,107 $7,575 $6,633 $938 $8,628 $6,391
All Employees (Excluding Warehouse, $9,934 $10,822 $10,830 $1,339 $13,130 $11,949
Delivery, and Installation Employees)
Total Gross Profit Per:
Sales Management Employee $1,917,517 $1,765,862 $2,044,121 $465,023 $2,044,121 $3,517,688
Outside Sales Employee $401,603 $426,398 $352,010 $276,043 $435,203 $517,580
Inside Sales/Telemarketing Employee $1,965,607 $2,250,742 $1,611,939 * * $4,274,704
Customer Service/Sales Support Employee $478,397 $394,382 $681,374 $210,772 $711,975 $512,999
Total Sales Staff Employee $161,182 $151,375 $167,686 $113,419 $242,163 $206,163
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Delivery Staff Employee $354,219 $346,757 $625,477 $346,757 $569,580 $613,208
Installation Staff Employee $594,373 $1,826,290 $511,030 $431,050 $711,975 $1,210,331
Warehouse Staff Employee $1,031,166 $920,224 $1,223,005 $552,085 $1,423,949 $1,007,999
Total Delivery & Installation Staff Employee $234,716 $232,108 $214,130 $260,068 $232,108 $227,869
Office & Administration Staff Employee $286,842 $283,548 $381,530 $232,512 $290,135 $632,236
All Employees Overall $74,585 $70,887 $78,108 $49,333 $81,369 $90,753
All Employees (Excluding Warehouse, $112,827 $99,475 $112,827 $69,440 $126,346 $151,416
Delivery, and Installation Employees)
Detailed Information
NOPA D E A L E R F I N A N C I A L C O M P A R I S O N A N D B E N C H M A R K I N G G U I D E
40
Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
Percentage of Selling Staff Sales from:
Outside Sales 90.0% 92.5% 82.5% 80.0% 95.0% 90.0%
Inside Sales/Telemarketing 10.0% 7.5% 17.5% 20.0% 5.0% 10.0%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
SPACE MANAGEMENT MEASURES
Average Number of Locations 1.1 0.0 2.2 0.4 0.9 0.7
Product Sales Per Location $5,461,130 * $4,652,769 $1,707,692 $8,006,701 *
Services Revenues Per Location $396,296 * $367,687 $58,194 $678,066 *
Total Revenue Per Location $5,800,208 * $5,370,368 $1,765,885 $8,922,381 *
Total Revenues Per Square Foot of:
Sales/Retail Space $1,793 * $1,276 $1,275 $905 *
Warehouse Space-excluding temporary rental $640 $849 $344 $768 $331 $773
(Only Includes Firms That Do Not Primarily
Subcontract Warehouse Space)
Office Space $1,815 $1,711 $2,091 $1,979 $1,914 $1,618
Total Space $500 $539 $194 $516 $193 $529
Net Profit Before Tax Per Square Foot of:
Sales/Retail Space $28.45 * $51.75 $10.07 $81.65 *
Warehouse Space-excluding temporary rental $6.87 $13.07 $6.75 $6.25 $22.36 $13.26
(Only Includes Firms That Do Not Primarily
Subcontract Warehouse Space)
Office Space $29.08 $30.52 $36.51 $12.50 $61.89 $33.32
Total Space $5.08 $10.55 $4.25 $3.13 $11.66 $9.23
SALES DETAIL
Credit Sales
Total Annual Credit Sales (as a % of Total Revenue) 98.4% 94.6% 99.0% 98.4% 87.9% 99.7%
Market Mix--% of Total Sales from:
Commercial/Contract 34.2% 34.4% 30.6% 22.9% 41.1% 57.0%
Small Business 31.3% 38.6% 24.5% 38.2% 28.7% 12.2%
SoHo 1.2% 0.8% 1.8% 0.8% 1.1% 0.8%
Government 13.1% 9.8% 17.5% 14.1% 10.7% 9.0%
Healthcare 8.0% 7.8% 8.7% 11.3% 7.1% 9.2%
Education 11.5% 8.4% 15.8% 12.7% 11.2% 11.1%
Other 0.7% 0.3% 1.1% 0.0% 0.1% 0.7%
Total Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Detailed Information
NOPA D E A L E R F I N A N C I A L C O M P A R I S O N A N D B E N C H M A R K I N G G U I D E
41
Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
Percent of each category's total sales that are for
internet sales:
Office Equipment, Business Machines, & Supplies 35.2% 35.2% * 32.5% * *
Computer Hardware, Software, & Supplies 63.5% 63.0% * * * *
Furniture & Accessories 10.0% 15.0% 10.0% 12.5% 9.5% *
Office Supplies 66.0% 64.0% 67.0% 54.5% 66.0% *
Janitorial/Warehouse 64.5% 60.0% 78.5% 45.0% * *
Coffee/Breakroom 60.0% 58.6% 75.0% 45.0% 69.0% *
Other Products 21.0% 21.0% * * * *
Total Sales 53.0% 60.0% 49.5% 47.5% * *
Product Sales as a % of Total Product Sales:
Office Equipment, Business Machines, & Supplies 15.5% 21.3% 5.4% 9.4% 14.4% 24.6%
Computer Hardware, Software, & Supplies 6.9% 8.7% 5.4% 8.2% 9.0% 3.3%
Furniture & Accessories 33.0% 16.6% 50.7% 22.4% 43.4% 36.2%
Office Supplies 32.6% 40.6% 26.4% 42.5% 26.1% 26.4%
Janitorial/Warehouse 4.8% 5.3% 4.7% 7.2% 2.5% 4.0%
Coffee/Breakroom 1.83% 2.53% 1.16% 1.73% 0.91% 2.86%
Other Products 5.3% 5.0% 6.3% 8.6% 3.8% 2.7%
Total Product Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Services Revenues as a % of Total Services Revenues:
Delivery & Installation (incl. Services 58.7% 62.9% 62.5% 22.5% 63.4% 81.3%
& Intermarket)
Print/Fax/Copy Services 22.1% 28.2% 9.4% 23.8% 31.0% 8.3%
Equipment Maintenance Contracts 8.9% 7.6% 10.8% 26.9% 0.1% 7.0%
Other Services Revenue 10.3% 1.3% 17.3% 26.9% 5.6% 3.5%
Total Services Revenues 100.0% 100.0% 100% 100% 100.0% 100%
Product Gross Profit Detail
(i.e., Product Sales Less Product Cost)
Office Equipment, Business Machines, & Supplies 26.7% 25.5% 28.9% 26.7% 29.9% 24.6%
Computer Hardware, Software, & Supplies 23.4% 22.7% 26.4% 23.4% * *
Furniture & Accessories 27.5% 28.1% 24.8% 28.1% 24.1% 25.5%
Office Supplies 26.2% 25.8% 26.7% 25.0% 27.0% 26.4%
Janitorial/Warehouse 27.0% 28.1% 26.5% 26.9% 27.3% 30.9%
Coffee/Breakroom 27.2% 27.4% 26.9% 28.7% 22.7% 27.4%
Other Products 30.9% 31.7% 30.2% 33.5% 30.2% 31.2%
Total Gross Profit-Products 27.2% 27.1% 28.4% 28.0% 27.6% 23.6%
Detailed Information
NOPA D E A L E R F I N A N C I A L C O M P A R I S O N A N D B E N C H M A R K I N G G U I D E
42
Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
SALES STAFF TIME SPENT IN SALES
% Time Spent in Sales:
Sales Management 71.5% 64.0% 81.4% 72.4% 72.5% 82.9%
Outside Sales 91.1% 88.9% 94.6% 85.0% 82.4% 100.0%
Inside Sales/Telemarketing 72.7% 82.2% 61.9% * 100.0% 75.8%
Sales Support 55.5% 56.1% 55.6% 50.8% * 64.2%
Customer Service/Order Entry 49.9% 48.7% 55.5% 34.3% 38.7% 70.7%
Other 46.9% * 58.3% * * 36.3%
TOTAL NUMBER OF EMPLOYEES BY POSITION
Sales Staff Employees
Sales Management 1.4 1.5 1.3 1.3 1.1 1.7
Outside Sales 6.5 7.7 5.1 1.8 5.8 14.5
Inside Sales/Telemarketing 0.7 0.7 0.7 0.4 0.6 1.2
Sales Support 2.1 3.0 1.3 1.0 0.9 5.3
Customer Service/Order Entry 3.4 4.9 1.9 1.2 2.6 7.6
Other 0.8 0.1 1.6 0.6 0.7 1.1
Total Sales Staff Employees 14.8 17.9 11.8 6.3 11.6 31.3
Delivery & Installation Staff Employees
Delivery Staff 6.3 9.1 3.5 1.2 5.1 15.3
Installation Staff 3.8 3.7 4.2 0.7 2.7 9.8
Warehouse Staff 3.8 5.7 1.8 0.7 2.1 10.3
Other Whse, Dlvry & Installation Staff 0.6 0.5 0.8 0.1 1.0 1.0
Total Delivery & Installation Staff Employees 14.5 19.0 10.2 2.7 10.9 36.5
Office/Administrative Staff Employees
Officers/Owners/General Manager 2.0 2.1 1.8 1.8 1.9 2.3
Accounting/Human Resources/Purchasing 3.3 4.3 2.2 0.6 3.1 7.5
ITS Staff 0.6 0.8 0.3 0.2 0.4 1.2
Other Office/Administrative Staff 1.2 1.1 0.8 0.3 1.9 1.7
Total Office/Administrative Staff 7.0 8.3 5.1 2.9 7.3 12.7
Total Employees Overall (Based on All 36.3 45.2 26.9 11.9 29.9 80.3
Respondents)
Total Employees Overall (Excluding Warehouse, 21.8 26.2 16.7 9.2 18.9 43.8
Delivery, and Installation Employees)
Detailed Information
NOPA D E A L E R F I N A N C I A L C O M P A R I S O N A N D B E N C H M A R K I N G G U I D E
43
Dealers with... Total Revenues
No Retail
Stores
Retail
Stores
Under $5
Million
$5-10
Million
Over $10
MillionAll Dealers
GENERAL INFORMATION
Company Type
Commercial Dealer with No Retail Stores 54.6% 100.0% 0.0% 55.6% 28.6% 71.4%
Commercial Dealer with Retail Stores 42.4% 0.0% 100.0% 44.4% 57.1% 28.6%
Other 3.0% 0.0% 0.0% 0.0% 14.3% 0.0%
Primary Business Structure
Proprietorship 3.0% 5.6% 0.0% 11.1% 0.0% 0.0%
Partnership 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
C Corporation 24.2% 27.8% 21.4% 11.1% 14.3% 28.6%
S Corporation 60.6% 55.6% 64.3% 77.8% 71.4% 71.4%
Limited Liability Corp (LLC) 9.1% 11.1% 7.1% 0.0% 14.3% 0.0%
Other 3.0% 0.0% 7.1% 0.0% 0.0% 0.0%
Population of Primary Market Area
Less Than 100,000 9.4% 0.0% 23.1% 11.1% 0.0% 0.0%
100,000 to 250,000 21.9% 22.2% 23.1% 66.7% 0.0% 0.0%
250,000 to 500,000 9.4% 16.7% 0.0% 0.0% 0.0% 14.3%
500,000 to 1 Million 12.5% 5.6% 23.1% 0.0% 33.3% 14.3%
1 - 3 Million 28.1% 38.9% 15.4% 22.2% 33.3% 14.3%
Greater than 3 Million 18.8% 16.7% 15.4% 0.0% 33.3% 57.1%
Avg. Staff Size of Commercial Accounts
Less Than 10 staff 21.9% 17.7% 28.6% 44.4% 0.0% 0.0%
10 to 50 Staff 56.3% 64.7% 42.9% 44.4% 85.7% 50.0%
51 to 100 Staff 15.6% 17.7% 14.3% 11.1% 0.0% 33.3%
101 to 250 Staff 6.3% 0.0% 14.3% 0.0% 14.3% 16.7%
Greater than 250 Staff 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
NOPA D E A L E R F I N A N C I A L C O M P A R I S O N A N D B E N C H M A R K I N G GU I D E
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B Y P R O F I T G R O U P A N D M A R K E T A R E A S E R V E D
Detailed Information
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B Y P R O F I T G R O U P A N D M A R K E T A R E A S E R V E D
By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
SUMMARY INCOME STATEMENT-% OF TOTAL REVENUES
Product Sales as a % of Total Revenues:
Office Equipment, Business Machines, & Supplies 5.99% 16.76% 13.69% 10.82%
Computer Hardware, Software, & Supplies 5.61% 8.69% 8.65% 6.77%
Furniture & Accessories 36.10% 25.24% 26.20% 30.74%
Office Supplies 31.85% 34.25% 33.16% 34.24%
Janitorial/Warehouse 5.95% 3.91% 6.11% 4.53%
Coffee/Breakroom 1.37% 2.38% 1.73% 2.04%
Other Products 6.02% 4.51% 5.68% 5.06%
Total Product Sales 92.90% 95.74% 95.21% 94.21%
Services Revenues as a % of Total Revenues:
Delivery & Installation (incl. Services 4.16% 1.95% 1.08% 3.72%
& Intermarket)
Print/Fax/Copy Services 0.30% 1.86% 0.58% 1.47%
Equipment Maintenance Contracts 1.97% 0.07% 2.76% 0.03%
Other Services Revenue 0.68% 0.38% 0.37% 0.57%
Total Services Revenues 7.10% 4.26% 4.79% 5.79%
Total Revenues 100.00% 100.00% 100.00% 100.00%
Total Cost of Sales 67.51% 71.93% 69.86% 69.65%
Total Gross Profit Product & Services 32.49% 28.07% 30.14% 30.35%
EXPENSES
Warehouse, Delivery & Installation Expenses:
Compensation-Warehouse, Delivery, 4.72% 4.23% 3.31% 5.14%
Installation Staff
Outside Labor 1.04% 0.33% 0.00% 1.03%
Vehicle Expense 0.86% 1.01% 0.85% 0.99%
Outside Cartage 0.45% 1.28% 1.17% 0.70%
Warehouse Utilities 0.11% 0.10% 0.11% 0.10%
Warehouse Rent/Lease 1.00% 0.26% 0.32% 0.83%
Depreciation, Warehouse 0.07% 0.00% 0.01% 0.06%
Depreciation, Equipment 0.00% 0.01% 0.01% 0.01%
Depreciation, Warehouse Vehicles 0.20% 0.25% 0.29% 0.18%
Other WD&I Expenses 0.13% 0.18% 0.06% 0.16%
Total Warehouse/Delivery/Installation Expenses 8.59% 7.67% 6.12% 9.21%
Detailed Information
NOPA D E A L E R F I N A N C I A L C O M P A R I S O N A N D B E N C H M A R K I N G G U I D E
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By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
Selling Expenses:
Compensation-Sales Managers 0.96% 1.42% 1.68% 0.86%
Compensation-Outside Sales 3.66% 5.80% 4.97% 4.65%
Compensation-Inside Sales/Telemarketing 0.33% 0.88% 0.94% 0.40%
Compensation-Sales Support 0.57% 0.58% 0.33% 0.65%
Compensation-Customer Service/Order Entry 0.70% 1.35% 0.43% 1.41%
Compensation-Marketing 0.03% 0.14% 0.00% 0.10%
Automobile Expenses 0.30% 0.22% 0.28% 0.26%
Advertising & Promotion 0.44% 0.69% 0.90% 0.36%
Travel & Entertainment 0.18% 0.11% 0.16% 0.14%
Other Sales Expenses 0.34% 0.31% 0.16% 0.45%
Total Selling Expenses 7.51% 11.50% 9.86% 9.28%
Occupancy Expenses:
Retail/Office-Rent/Lease 1.36% 1.12% 1.75% 0.88%
Retail/Office-Utilities 0.15% 0.26% 0.26% 0.15%
Janitorial and Maintenance 0.18% 0.16% 0.18% 0.16%
Depreciation, Retail/Office 0.03% 0.13% 0.13% 0.03%
Property Taxes 0.23% 0.07% 0.10% 0.17%
Other Occupancy Expenses 0.27% 0.05% 0.33% 0.05%
Total Occupancy Expenses 2.22% 1.80% 2.75% 1.44%
Office Expenses:
Compensation--Office Staff 2.00% 1.93% 2.80% 1.48%
Office Supplies/Stationery 0.17% 0.23% 0.27% 0.16%
Computer Supplies 0.03% 0.09% 0.02% 0.09%
Non-capitalized Computer Equipment 0.01% 0.25% 0.34% 0.01%
Computer S/W Upgrades and Licenses 0.37% 0.69% 0.65% 0.42%
Depreciation-Furniture/Fixtures/Equipment 0.10% 0.08% 0.06% 0.09%
Depreciation-Computer H/W & S/W 0.02% 0.15% 0.06% 0.09%
Equipment Leases and Maintenance 0.06% 0.32% 0.41% 0.07%
Telecommunications Expenses 0.24% 0.25% 0.27% 0.23%
Postage 0.04% 0.17% 0.17% 0.07%
Other Office Expenses 0.10% 0.45% 0.35% 0.25%
Total Office Expenses 3.14% 4.61% 5.42% 2.95%
Detailed Information
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By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
Administrative Expenses:
Compensation-Officers/Owners/GMs 2.85% 2.49% 3.06% 2.51%
Pension/Profit Sharing Contributions 0.18% 0.38% 0.37% 0.15%
Outside Labor 0.01% 0.03% 0.03% 0.02%
Depreciation, Vehicles 0.14% 0.01% 0.19% 0.02%
Vehicles Expense 0.31% 0.04% 0.14% 0.21%
Bad Debts -0.11% -0.03% 0.03% -0.14%
Amortization Expenses 0.02% 0.20% 0.02% 0.17%
Insurance-Property & Liability 0.39% 0.35% 0.31% 0.41%
Insurance-Health 0.69% 0.89% 0.76% 0.87%
Professional Services 0.27% 0.41% 0.33% 0.36%
Travel and Entertainment 0.21% 0.07% 0.10% 0.17%
Training Expenses 0.01% 0.04% 0.04% 0.01%
Other Taxes & Penalties 0.30% 0.95% 1.18% 0.20%
Other Administrative Expenses 6.08% 6.31% 7.31% 5.54%
Total Administrative Expenses 5.43% 6.94% 6.06% 6.80%
Total Operating Expenses 27.54% 31.88% 31.46% 28.42%
Operating Profit 4.95% -3.81% -1.32% 1.93%
Other Expenses:
Cash Discounts Allowed 0.07% 0.08% 0.10% 0.06%
Interest Expenses 0.26% 0.24% 0.16% 0.30%
Miscellaneous Expenses 0.23% 0.01% 0.00% 0.20%
Total Other Expenses 0.57% 0.32% 0.26% 0.57%
Other Income:
Discounts Earned 0.32% 0.36% 0.07% 0.48%
Interest Earned 0.07% 0.01% 0.01% 0.06%
Incentive Programs 0.43% 3.08% 1.14% 2.16%
Miscellaneous Other Income 0.20% 0.42% 0.38% 0.28%
Total Other Income 1.00% 3.86% 1.60% 2.98%
Net Profit Before Taxes 5.39% -0.28% 0.03% 4.34%
Detailed Information
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By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
BALANCE SHEET INFORMATION AS A % OF TOTAL ASSETS
Assets
Cash & Short-Term Investments 16.1% 10.4% 12.2% 14.5%
Accounts Receivable 29.1% 42.0% 38.0% 35.2%
Notes Receivable 2.3% 1.1% 0.2% 2.7%
Inventory 27.7% 16.7% 22.8% 19.6%
Prepayments & Deferred Charges 0.4% 1.7% 0.4% 1.4%
Other Current Assets 1.0% 0.9% 1.2% 1.4%
Total Current Assets 76.6% 72.8% 74.8% 74.9%
Land 2.1% 0.0% 0.0% 3.3%
Building-Net 2.4% 1.1% 1.4% 2.1%
Autos & Trucks-Net 6.7% 6.2% 7.4% 6.5%
Furniture & Fixtures-Net 1.5% 3.5% 3.1% 1.3%
Computer & Data Processing Equipment-Net 0.9% 2.5% 2.3% 0.8%
Leasehold Improvements-Net 2.6% 3.5% 3.6% 2.0%
Other Fixed Assets 0.3% 3.4% 0.5% 2.6%
Total Fixed Assets 16.4% 20.3% 18.2% 18.6%
Long-Term Investments 0.2% 2.4% 2.5% 0.5%
Other Long-Term Assets 6.8% 4.5% 4.5% 6.1%
Total Other Long-Term Assets 7.0% 6.9% 7.0% 6.5%
Total Assets 100.0% 100.0% 100.0% 100.0%
Liabilities
Accounts Payable 27.5% 26.0% 27.4% 26.1%
Customer Deposits 8.3% 2.5% 0.0% 7.6%
Notes Payable 6.3% 8.6% 6.2% 6.1%
Accrued Salaries & Commissions 4.5% 3.0% 1.4% 4.9%
Accrued Taxes 1.5% 2.2% 2.0% 0.8%
Other 5.4% 3.8% 2.9% 6.4%
Total Current Liabilities 53.5% 46.0% 39.9% 51.9%
Notes Payable 6.9% 25.2% 28.4% 7.7%
Long-Term Debt 5.9% 0.4% 2.6% 3.2%
Other Long-Term Liabilities 2.3% 0.3% 1.2% 2.7%
Total Long-Term Liabilities 15.1% 25.9% 32.1% 13.6%
Total Liabilities 68.5% 71.9% 72.0% 65.5%
Net Worth or Stockholder’s Equity
Total Net Worth or Stockholder's Equity 31.5% 28.1% 28.0% 34.5%
Total Liabilities and Net Worth 100.0% 100.0% 100.0% 100.0%
Detailed Information
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By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
OVERALL PROFITABILITY MEASURES
Net Profit Before Tax-% of Total Revenues 5.39% -0.28% 0.03% 4.34%
Net Profit Before Tax-% of Total Assets 16.66% 2.16% 4.00% 13.83%
Net Profit Before Tax-% of Net Worth 38.25% 8.96% 11.90% 75.84%
Net Profit Before Interest & Tax -% of Assets 18.42% 3.10% 5.15% 15.05%
EBDIT (i.e., Earnings, or Net Profit, Before 6.22% 0.60% 0.92% 5.12%
Taxes, Depreciation and Interest as a % of
Total Revenues)
Operating Profit-% of Total Revenues 4.95% -3.81% -1.32% 1.93%
Gross Profit-Product-% of Total Product Sales 28.39% 26.12% 28.39% 27.00%
REVENUES SUMMARY
Average Total Product & Services Revenues $6,275,652 $14,948,880 $3,958,993 $15,784,049
Percent Change in Revenues from Prior Year
Total Product Sales -1.76% -0.89% -3.19% -0.47%
Total Services Revenues -0.38% 20.68% * -0.38%
Total Revenues Overall -1.72% -0.66% -2.96% -0.44%
OVERALL ASSET MANAGEMENT SUMMARY
Total Revenues/Total Assets (Asset Turnover) 4.6 3.8 4.4 3.8
Total Revenues/Net Fixed Assets (Fixed Asset 53.7 25.4 52.0 28.2
Turnover)
RECEIVABLES MANAGEMENT
Average Collection Period (i.e., Days 30 29 28 32
Receivables Outstanding)
FINANCIAL MANAGEMENT MEASURES
Interest Expense as a % of Total Revenues 0.26% 0.24% 0.16% 0.30%
Current Ratio (Current Assets/Current Liab.) 1.5 1.8 2.3 1.6
Acid Test (or Quick) Ratio (Cash + Accounts 1.1 1.2 1.6 1.3
Receivable/Current Liabilities)
Current Liabilities/Net Worth 1.0 0.9 0.6 1.1
Current Liabilities/Inventory 2.0 3.1 2.0 2.2
Total Liabilities/Net Worth 1.2 1.1 0.9 1.4
Fixed Assets/Net Worth 0.3 0.3 0.3 0.3
Total Revenues/Net Worth 7.0 15.5 6.9 7.3
Total Revenues/Net Working Capital (i.e., CA-CL) 8.2 7.5 9.2 9.7
Inventory/Net Working Capital 0.5 0.3 0.4 0.3
Days Payables Outstanding 25 33 35 25
Customer Deposits-% of Total Revenues 2.7% 0.0% 0.5% 0.2%
Detailed Information
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By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
INVENTORY MANAGEMENT SUMMARY
Inventory Turnover (COGS/Average Inventory) 13.1 26.1 20.2 22.4
Inventory Turnover Days (365/Inventory Turnover) 28 14 23 16
Average Number of Days to Convert Inventory 54 46 50 51
To Cash (Average Inventory/(COGS/365)
Product Sales to Inventory 18.5 34.4 27.6 30.2
WAREHOUSE/DELIVERY PERFORMANCE MEASURES
Number of Office Product SKUs Stocked 900.0 450.0 350.0 325.0
Number of SKUs Shipped Annually 20,000.0 18,717.5 8,250.0 21,000.0
Deliveries per Day 51.0 142.0 30.0 132.5
Delivery Schedule Achievement (% on time and 97.5% 98.0% 98.0% 98.0%
correct
Average Lead Time (Days) 1.1 1.0 1.1 1.0
Orders per Month 850.0 3,065.0 920.0 2,590.5
Average Order Size $279.0 $198.7 $198.7 245.41
Lines (SKUs) Pulled per Hour 42.5 126.5 42.5 106.0
Order Fill Rate 98.0 98.1 98.0 98.0
Lines (SKUs) per Order 5.0 4.4 5.5 4.1
PERSONNEL MANAGEMENT SUMMARY
Total Employee Compensation Expense 15.8% 18.8% 17.5% 17.2%
as a % of Total Revenues
Total Outside Labor Cost 1.1% 0.4% 0.0% 1.1%
as a % of Total Revenues
Delivery & Installation Revenue Per $13,831 $20,289 $6,379 $20,475
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Total Revenues Per:
Sales Management Employee $4,940,529 $6,705,776 $1,864,438 $8,700,312
Outside Sales Employee $1,373,775 $1,468,311 $863,585 $1,824,385
Inside Sales/Telemarketing Employee $5,429,684 $8,826,111 * $11,168,265
Customer Service/Sales Support Employee $1,979,777 $1,595,466 $1,000,853 $1,936,337
Total Sales Staff Employee $400,000 $698,017 $362,737 $790,937
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Delivery Staff Employee $1,510,342 $1,412,825 $1,200,000 $1,412,825
Installation Staff Employee $1,274,626 $4,055,837 $1,804,600 $2,594,428
Warehouse Staff Employee $4,551,710 $3,352,888 $1,804,600 $4,137,233
Total Delivery & Installation Staff Employee $758,618 $809,610 $780,767 $809,610
Detailed Information
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By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
Total Revenues Per: (continued)
Office & Administration Staff Employee $988,106 $1,080,660 $765,410 $1,487,064
All Employees Overall $224,570 $285,241 $166,359 $285,241
All Employees (Excluding Warehouse, $297,413 $466,759 $243,369 $466,759
Delivery, and Installation Employees)
Net Profit Before Tax Per:
Sales Management Employee $227,050 $39,236 $8,147 $205,020
Outside Sales Employee $49,874 $13,448 $8,719 $47,308
Inside Sales/Telemarketing Employee $241,638 $98,151 * $278,255
Customer Service/Sales Support Employee $75,617 $11,210 $4,688 $53,035
Total Sales Staff Employee $22,167 $4,360 $3,117 $23,635
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Delivery Staff Employee $74,988 $25,487 $19,618 $49,566
Installation Staff Employee $75,495 $46,025 $17,168 $75,495
Warehouse Staff Employee $227,050 $15,694 $3,459 $122,528
Total Delivery & Installation Staff Employee $43,705 $5,231 $4,345 $23,451
Office & Administration Staff Employee $33,250 $7,134 $5,911 $31,564
All Employees Overall $10,320 $1,783 $1,360 $8,628
All Employees (Excluding Warehouse, $13,130 $2,706 $2,023 $14,432
Delivery, and Installation Employees)
Total Gross Profit Per:
Sales Management Employee $1,771,180 $2,044,121 $527,056 $2,760,672
Outside Sales Employee $431,548 $401,603 $276,043 $501,149
Inside Sales/Telemarketing Employee $1,611,939 $2,250,742 * $2,760,672
Customer Service/Sales Support Employee $579,296 $427,470 $294,545 $547,601
Total Sales Staff Employee $127,290 $172,542 $107,200 $199,127
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Delivery Staff Employee $458,390 $354,219 $347,200 $354,219
Installation Staff Employee $438,080 $1,161,691 $552,085 $711,975
Warehouse Staff Employee $1,423,949 $920,224 $552,085 $1,232,111
Total Delivery & Installation Staff Employee $260,068 $212,359 $239,286 $237,325
Office & Administration Staff Employee $283,548 $290,135 $214,437 $467,007
ALL EMPLOYEES OVERALL $70,887 $75,708 $47,918 $81,369
ALL EMPLOYEES (Excluding Warehouse, $98,399 $129,536 $67,936 $129,536
Delivery, and Installation Employees)
Detailed Information
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By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
Percentage of Selling Staff Sales from:
Outside Sales 90.0% 90.0% 77.5% 95.0%
Inside Sales/Telemarketing 10.0% 10.0% 22.5% 5.0%
Total 100.0% 100.0% 100.0% 100.0%
SPACE MANAGEMENT MEASURES
Average Number of Locations 1.0 0.3 0.5 1.5
Product Sales Per Location $4,652,769 * $1,707,692 $8,125,508
Services Revenues Per Location $367,687 * $58,194 $537,181
Total Revenue Per Location $5,370,368 * $1,765,885 $9,012,901
Total Revenues Per Square Foot of:
Sales/Retail Space $1,793 $1,425 $1,647 $1,944
Warehouse Space-excluding temporary rental $428 $1,223 $768 $640
(Only Includes Firms That Do Not Primarily
Subcontract Warehouse Space)
Office Space $1,879 $1,849 $2,026 $1,879
Total Space $356 $612 $450 $529
Net Profit Before Tax Per Square Foot of:
Sales/Retail Space $78.66 $2.90 $9.81 $87.20
Warehouse Space-excluding temporary rental $11.88 $2.62 $6.25 $23.52
(Only Includes Firms That Do Not Primarily
Subcontract Warehouse Space)
Office Space $53.20 $4.69 $10.17 $60.17
Total Space $12.93 $1.15 $2.38 $14.51
SALES DETAIL
Credit Sales
Total Annual Credit Sales (as a % of Total
Revenue) 99.0% 95.0% 100.0% 92.2%
Market Mix--% of Total Sales from:
Commercial/Contract 33.2% 42.1% 22.4% 41.9%
Small Business 25.1% 30.6% 39.8% 25.7%
SoHo 0.4% 1.2% 2.1% 0.7%
Government 12.3% 11.4% 12.8% 13.6%
Healthcare 11.7% 7.9% 7.7% 8.2%
Education 17.3% 6.4% 14.9% 9.0%
Other 0.0% 0.4% 0.4% 0.9%
Total Sales 100.0% 100.0% 100.0% 100.0%
Detailed Information
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By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
Percent of each category's total sales that are for
internet sales:
Office Equipment, Business Machines, & Supplies 32.5% * 32.5% 35.2%
Computer Hardware, Software, & Supplies * 69.0% * 64.0%
Furniture & Accessories 12.5% 8.2% 7.0% 10.0%
Office Supplies 75.0% 64.0% 34.0% 66.5%
Janitorial/Warehouse 75.0% 63.0% 37.5% 67.5%
Coffee/Breakroom 62.5% 60.0% 37.5% 66.0%
Other Products * * * *
Total Sales 50.0% 60.0% 47.5% 55.0%
Product Sales as a % of Total Product Sales:
Office Equipment, Business Machines, & Supplies 6.5% 17.9% 14.7% 17.1%
Computer Hardware, Software, & Supplies 5.7% 8.8% 8.8% 6.4%
Furniture & Accessories 40.7% 27.2% 27.9% 33.0%
Office Supplies 33.1% 35.1% 34.6% 32.5%
Janitorial/Warehouse 6.1% 4.0% 6.3% 4.3%
Coffee/Breakroom 1.40% 2.42% 1.77% 1.92%
Other Products 6.4% 4.7% 6.0% 4.9%
Total Product Sales 100.0% 100.0% 100.0% 100.0%
Services Revenues as a % of Total Services Revenues:
Delivery & Installation (incl. Services 67.5% 51.9% 35.2% 67.4%
& Intermarket)
Print/Fax/Copy Services 12.0% 29.9% 21.8% 24.5%
Equipment Maintenance Contracts 13.9% 5.1% 21.5% 3.5%
Other Services Revenue 6.5% 13.2% 21.5% 4.6%
Total Services Revenues 100.0% 100.0% 100.0% 100.0%
Product Gross Profit Detail
(i.e., Product Sales Less Product Cost)
Office Equipment, Business Machines, & Supplies 29.3% 25.5% 27.9% 25.5%
Computer Hardware, Software, & Supplies 27.6% 21.0% 23.6% 22.0%
Furniture & Accessories 26.0% 27.7% 28.2% 24.6%
Office Supplies 26.6% 26.1% 26.2% 25.8%
Janitorial/Warehouse 26.9% 27.7% 25.9% 28.3%
Coffee/Breakroom 27.8% 25.4% 28.7% 24.7%
Other Products 29.3% 31.5% 31.2% 31.0%
Total Gross Profit-Products 28.8% 26.5% 28.4% 26.2%
Detailed Information
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By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
SALES STAFF TIME SPENT IN SALES
% Time Spent in Sales:
Sales Management 81.7% 68.7% 59.6% 77.0%
Outside Sales 92.0% 85.5% 92.5% 90.3%
Inside Sales/Telemarketing 59.0% 96.7% 63.3% 77.7%
Sales Support 54.3% 60.0% 62.5% 52.3%
Customer Service/Order Entry 50.0% 40.8% 48.9% 50.4%
Other 54.0% * * 53.6%
TOTAL NUMBER OF EMPLOYEES BY POSITION
Sales Staff Employees
Sales Management 1.2 1.6 1.3 1.5
Outside Sales 4.1 8.9 3.0 8.8
Inside Sales/Telemarketing 0.6 0.7 0.5 0.8
Sales Support 1.2 3.1 1.0 2.8
Customer Service/Order Entry 2.2 4.6 1.3 4.9
Other 1.4 0.1 0.6 0.9
Total Sales Staff Employees 10.7 19.0 7.6 19.7
Delivery & Installation Staff Employees
Delivery Staff 3.1 9.5 1.4 9.5
Installation Staff 3.3 4.4 1.2 5.5
Warehouse Staff 1.5 6.1 1.3 5.4
Other Whse, Dlvry & Installation Staff 0.5 0.8 0.4 0.5
Total Delivery & Installation Staff Employees 8.4 20.7 4.3 21.0
Office/Administrative Staff Employees
Officers/Owners/General Manager 1.8 2.1 1.9 2.0
Accounting/Human Resources/Purchasing 2.0 4.6 1.4 4.5
ITS Staff 0.2 0.9 0.3 0.7
Other Office/Administrative Staff 0.7 1.7 0.4 1.8
Total Office/Administrative Staff 4.7 9.2 3.9 9.0
Total Employees Overall (Based on All 23.6 48.9 15.8 49.6
Respondents)
Total Employees Overall (Excluding Warehouse, 15.3 28.2 11.5 28.7
Delivery, and Installation Employees)
Detailed Information
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By Profit Group By Market Area Served
High Profit Low Profit 500,000 Over
Dealers Dealers or Less 500,000
GENERAL INFORMATION
Company Type
Commercial Dealer with No Retail Stores 27.3% 72.7% 53.9% 57.9%
Commercial Dealer with Retail Stores 72.7% 18.2% 46.2% 36.8%
Other 0.0% 9.1% 0.0% 5.3%
Primary Business Structure
Proprietorship 0.0% 9.1% 7.7% 0.0%
Partnership 0.0% 0.0% 0.0% 0.0%
C Corporation 0.0% 36.4% 30.8% 15.8%
S Corporation 90.9% 54.6% 53.9% 68.4%
Limited Liability Corp (LLC) 9.1% 0.0% 7.7% 10.5%
Other 0.0% 0.0% 0.0% 5.3%
Population of Primary Market Area
Less Than 100,000 0.0% 10.0% 23.1% 0.0%
100,000 to 250,000 36.4% 20.0% 53.9% 0.0%
250,000 to 500,000 0.0% 10.0% 23.1% 0.0%
500,000 to 1 Million 27.3% 0.0% 0.0% 21.1%
1 - 3 Million 18.2% 30.0% 0.0% 47.4%
Greater than 3 Million 18.2% 30.0% 0.0% 31.6%
Avg. Staff Size of Commercial Accounts
Less Than 10 staff 18.2% 20.0% 46.2% 5.6%
10 to 50 Staff 45.5% 80.0% 53.9% 55.6%
51 to 100 Staff 18.2% 0.0% 0.0% 27.8%
101 to 250 Staff 18.2% 0.0% 0.0% 11.1%
Greater than 250 Staff 0.0% 0.0% 0.0% 0.0%
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B Y N U M B E R O F F U L L - T I M E E Q U I V A L E N T E M P L O Y E E S
Detailed Information
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B Y N U M B E R O F F U L L - T I M E E Q U I V A L E N T S E M P L O Y E E S
Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
SUMMARY INCOME STATEMENT-% OF TOTAL
REVENUES
Product Sales as a % of Total Revenues:
Office Equipment, Business Machines, & Supplies 8.63% 10.24% 14.27%
Computer Hardware, Software, & Supplies 10.35% 7.61% 4.35%
Furniture & Accessories 22.39% 30.03% 37.54%
Office Supplies 40.28% 31.94% 28.18%
Janitorial/Warehouse 8.24% 2.31% 4.10%
Coffee/Breakroom 2.19% 0.74% 2.38%
Other Products 6.31% 9.01% 1.96%
Total Product Sales 98.38% 91.87% 92.78%
Services Revenues as a % of Total Revenues:
Delivery & Installation (incl. Services 0.56% 3.65% 4.61%
& Intermarket)
Print/Fax/Copy Services 0.56% 0.10% 2.13%
Equipment Maintenance Contracts 0.07% 3.61% 0.04%
Other Services Revenue 0.43% 0.78% 0.44%
Total Services Revenues 1.62% 8.13% 7.22%
Total Revenues 100.00% 100.00% 100.00%
Total Cost of Sales 71.43% 66.94% 70.24%
Total Gross Profit Product & Services 28.57% 33.06% 29.76%
EXPENSES
Warehouse, Delivery & Installation Expenses:
Compensation-Warehouse, Delivery, 2.89% 5.99% 4.69%
Installation Staff
Outside Labor 0.00% 0.55% 1.31%
Vehicle Expense 0.88% 0.94% 0.98%
Outside Cartage 1.04% 0.27% 1.12%
Warehouse Utilities 0.13% 0.19% 0.04%
Warehouse Rent/Lease 0.60% 0.39% 0.81%
Depreciation, Warehouse 0.00% 0.13% 0.01%
Depreciation, Equipment 0.00% 0.00% 0.02%
Depreciation, Warehouse Vehicles 0.30% 0.13% 0.24%
Other WD&I Expenses 0.03% 0.23% 0.21%
Total Warehouse/Delivery/Installation Expenses 5.87% 8.82% 9.42%
Detailed Information
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Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
Selling Expenses:
Compensation-Sales Managers 2.15% 0.88% 0.65%
Compensation-Outside Sales 4.42% 4.23% 5.31%
Compensation-Inside Sales/Telemarketing 1.01% 0.71% 0.22%
Compensation-Sales Support 0.52% 0.25% 0.83%
Compensation-Customer Service/Order Entry 0.56% 0.97% 1.42%
Compensation-Marketing 0.00% 0.14% 0.12%
Automobile Expenses 0.35% 0.14% 0.27%
Advertising & Promotion 0.95% 0.57% 0.26%
Travel & Entertainment 0.18% 0.11% 0.14%
Other Sales Expenses 0.22% 0.06% 0.59%
Total Selling Expenses 10.36% 8.06% 9.80%
Occupancy Expenses:
Retail/Office-Rent/Lease 1.16% 1.35% 1.24%
Retail/Office-Utilities 0.28% 0.15% 0.19%
Janitorial and Maintenance 0.13% 0.13% 0.23%
Depreciation, Retail/Office 0.12% 0.07% 0.06%
Property Taxes 0.06% 0.30% 0.13%
Other Occupancy Expenses 0.16% 0.27% 0.08%
Total Occupancy Expenses 1.90% 2.26% 1.92%
Office Expenses:
Compensation--Office Staff 2.44% 1.95% 1.61%
Office Supplies/Stationery 0.23% 0.24% 0.16%
Computer Supplies 0.02% 0.03% 0.12%
Non-capitalized Computer Equipment 0.39% 0.00% 0.01%
Computer S/W Upgrades and Licenses 0.73% 0.40% 0.46%
Depreciation-Furniture/Fixtures/Equipment 0.07% 0.10% 0.10%
Depreciation-Computer H/W & S/W 0.06% 0.13% 0.08%
Equipment Leases and Maintenance 0.47% 0.06% 0.06%
Telecommunications Expenses 0.26% 0.23% 0.24%
Postage 0.18% 0.06% 0.08%
Other Office Expenses 0.25% 0.54% 0.12%
Total Office Expenses 5.09% 3.73% 3.03%
Detailed Information
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Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
Administrative Expenses:
Compensation-Officers/Owners/General
Managers
2.85% 1.62% 3.23%
Pension/Profit Sharing Contributions 0.21% 0.33% 0.30%
Outside Labor 0.05% 0.00% 0.01%
Depreciation, Vehicles 0.20% 0.00% 0.04%
Vehicles Expense 0.19% 0.36% 0.04%
Bad Debts 0.09% 0.03% -0.26%
Amortization Expenses 0.00% 0.21% 0.13%
Insurance-Property & Liability 0.35% 0.47% 0.33%
Insurance-Health 0.56% 0.55% 1.13%
Professional Services 0.34% 0.46% 0.27%
Travel and Entertainment 0.16% 0.23% 0.07%
Training Expenses 0.04% 0.02% 0.01%
Other Taxes & Penalties 1.31% 0.30% 0.30%
Other Administrative Expenses 0.16% 1.19% 0.65%
Total Administrative Expenses 6.49% 5.77% 6.25%
Total Operating Expenses 29.72% 28.64% 30.43%
Operating Profit -1.15% 4.42% -0.67%
Other Expenses:
Cash Discounts Allowed 0.00% 0.00% 0.18%
Interest Expenses 0.16% 0.46% 0.18%
Miscellaneous Expenses 0.00% 0.28% 0.11%
Total Other Expenses 0.16% 0.74% 0.47%
Other Income:
Discounts Earned 0.06% 0.39% 0.51%
Interest Earned 0.00% 0.05% 0.05%
Incentive Programs 0.35% 1.63% 2.93%
Miscellaneous Other Income 0.23% 0.20% 0.43%
Total Other Income 0.65% 2.28% 3.92%
Net Profit Before Taxes -0.67% 5.96% 2.78%
Detailed Information
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Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
BALANCE SHEET INFORMATION AS A % OF
TOTAL ASSETS
Assets
Cash & Short-Term Investments 6.5% 15.0% 15.4%
Accounts Receivable 31.8% 32.9% 43.4%
Notes Receivable 0.2% 4.2% 0.7%
Inventory 30.9% 14.6% 18.8%
Prepayments & Deferred Charges 0.3% 1.4% 1.2%
Other Current Assets 0.0% 1.5% 2.0%
Total Current Assets 69.7% 69.6% 81.4%
Land 0.0% 1.7% 3.4%
Building-Net 1.8% 3.1% 0.7%
Autos & Trucks-Net 10.8% 4.3% 6.1%
Furniture & Fixtures-Net 4.2% 2.4% 1.0%
Computer & Data Processing Equipment-Net 3.1% 1.5% 0.6%
Leasehold Improvements-Net 2.8% 4.3% 2.1%
Other Fixed Assets 0.0% 4.2% 0.9%
Total Fixed Assets 22.7% 21.5% 14.9%
Long-Term Investments 3.3% 0.3% 0.4%
Other Long-Term Assets 4.2% 8.6% 3.4%
Total Other Long-Term Assets 7.6% 8.9% 3.8%
Total Assets 100.0% 100.0% 100.0%
Liabilities
Accounts Payable 36.7% 18.9% 25.5%
Customer Deposits 9.1% 4.7% 2.2%
Notes Payable 6.8% 11.0% 4.7%
Accrued Salaries & Commissions 2.8% 0.7% 5.8%
Accrued Taxes 1.8% 2.3% 1.2%
Other 2.0% 6.7% 5.3%
Total Current Liabilities 59.2% 44.3% 44.7%
Notes Payable 33.5% 13.3% 6.1%
Long-Term Debt 2.8% 3.3% 2.6%
Other Long-Term Liabilities 0.0% 3.3% 2.4%
Total Long-Term Liabilities 36.4% 19.9% 11.0%
Total Liabilities 95.5% 64.2% 55.7%
Net Worth or Stockholder’s Equity
Total Net Worth or Stockholder's Equity 4.5% 35.8% 44.3%
Total Liabilities and Net Worth 100.0% 100.0% 100.0%
Detailed Information
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Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
OVERALL PROFITABILITY MEASURES
Net Profit Before Tax-% of Total Revenues -0.67% 5.96% 2.78%
Net Profit Before Tax-% of Total Assets 3.82% 15.03% 12.95%
Net Profit Before Tax-% of Net Worth * 31.89% 31.71%
Net Profit Before Interest & Tax -% of Assets 4.30% 16.25% 12.95%
EBDIT (i.e., Earnings, or Net Profit, Before 0.25% 6.97% 3.50%
Taxes, Depreciation and Interest as a % of
Total Revenues)
Operating Profit-% of Total Revenues -1.15% 4.42% -0.67%
Gross Profit-Product-% of Total Product Sales 28.05% 28.87% 25.56%
REVENUES SUMMARY
Average Total Product & Services Revenues $1,629,936 $5,765,117 $21,335,415
Percent Change in Revenues from Prior Year
Total Product Sales -3.19% -6.11% 0.05%
Total Services Revenues * -6.25% 0.45%
Total Revenues Overall -2.96% -6.34% 0.26%
OVERALL ASSET MANAGEMENT SUMMARY
Total Revenues/Total Assets (Asset Turnover) 7.9 3.8 3.9
Total Revenues/Net Fixed Assets (Fixed Asset 54.9 18.6 28.2
Turnover)
RECEIVABLES MANAGEMENT
Average Collection Period (i.e., Days 27 29 33
Receivables Outstanding)
FINANCIAL MANAGEMENT MEASURES
Interest Expense as a % of Total Revenues 0.16% 0.46% 0.18%
Current Ratio (Current Assets/Current Liab.) 1.4 1.1 1.9
Acid Test (or Quick) Ratio (Cash + Accounts 1.1 0.9 1.4
Receivable/Current Liabilities)
Current Liabilities/Net Worth * 1.6 1.0
Current Liabilities/Inventory 2.2 2.9 2.1
Total Liabilities/Net Worth * 2.3 1.0
Fixed Assets/Net Worth * 0.4 0.3
Total Revenues/Net Worth * 7.0 7.5
Total Revenues/Net Working Capital (i.e., CA-CL) 12.6 5.6 9.7
Inventory/Net Working Capital 0.4 0.2 0.4
Days Payables Outstanding 34 26 31
Customer Deposits-% of Total Revenues 4.2% 1.0% 0.1%
Detailed Information
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Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
INVENTORY MANAGEMENT SUMMARY
Inventory Turnover (COGS/Average Inventory) 29.1 19.2 13.1
Inventory Turnover Days (365/Inventory Turnover) 13 20 28
Average Number of Days to Convert Inventory 40 50 81
To Cash (Average Inventory/(COGS/365)
Product Sales to Inventory 39.6 25.2 18.5
WAREHOUSE/DELIVERY PERFORMANCE
MEASURES
Number of Office Product SKUs Stocked 450.0 150.0 325.0
Number of SKUs Shipped Annually 8,500.0 15,717.5 21,890.0
Deliveries per Day 29.0 70.0 250.0
Delivery Schedule Achievement (% on time and
correct)
97.0% 95.1% 98.7%
Average Lead Time (Days) 1.1 1.0 1.0
Orders per Month 725.0 1,075.0 4,556.0
Average Order Size $198.7 $503.4 $228.0
Lines (SKUs) Pulled per Hour 35.0 * 133.5
Order Fill Rate 98.0 97.1 98.4
Lines (SKUs) per Order 6.0 4.8 3.9
PERSONNEL MANAGEMENT SUMMARY
Total Employee Compensation Expense 16.9% 16.7% 18.1%
as a % of Total Revenues
Total Outside Labor Cost 0.1% 0.6% 1.3%
as a % of Total Revenues
Delivery & Installation Revenue Per $0 $20,289 $42,379
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Total Revenues Per:
Sales Management Employee $1,727,170 $6,477,023 $9,739,389
Outside Sales Employee $882,943 $1,620,989 $1,787,551
Inside Sales/Telemarketing Employee * * $14,299,594
Customer Service/Sales Support Employee $794,546 $2,413,005 $2,131,638
Total Sales Staff Employee $345,434 $654,454 $811,616
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Delivery Staff Employee $1,151,447 $1,296,084 $2,230,595
Installation Staff Employee * * $2,594,428
Warehouse Staff Employee * $4,223,462 $3,722,755
Total Delivery & Installation Staff Employee $601,533 $837,069 $758,618
Detailed Information
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Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
Total Revenues Per: (continued)
Office & Administration Staff Employee $667,236 $1,038,551 $1,925,380
All Employees Overall $160,000 $253,860 $320,660
All Employees (Excluding Warehouse, $240,000 $424,748 $587,803
Delivery, and Installation Employees)
Net Profit Before Tax Per:
Sales Management Employee $3,857 $188,497 $282,201
Outside Sales Employee $4,272 $47,346 $40,314
Inside Sales/Telemarketing Employee * * $282,201
Customer Service/Sales Support Employee $2,372 $75,392 $48,469
Total Sales Staff Employee $1,730 $23,164 $17,638
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Delivery Staff Employee $6,250 $60,677 $38,829
Installation Staff Employee * * $72,704
Warehouse Staff Employee * $302,908 $72,704
Total Delivery & Installation Staff Employee $3,459 $41,007 $16,349
Office & Administration Staff Employee $2,306 $38,487 $30,152
All Employees Overall $769 $9,627 $8,144
All Employees (Excluding Warehouse, $988 $13,523 $13,130
Delivery, and Installation Employees)
Total Gross Profit Per:
Sales Management Employee $465,023 $1,781,046 $2,847,898
Outside Sales Employee $254,277 $435,203 $426,398
Inside Sales/Telemarketing Employee * * $4,274,704
Customer Service/Sales Support Employee $210,772 $698,869 $610,992
Total Sales Staff Employee $98,667 $189,250 $213,199
Delivery & Installation Employee (Only
Firms Having D&I Employees)
Delivery Staff Employee $310,015 $353,172 $726,488
Installation Staff Employee * * $711,975
Warehouse Staff Employee * $1,405,726 $1,095,774
Total Delivery & Installation Staff Employee $184,028 $246,088 $237,325
Office & Administration Staff Employee $196,363 $322,186 $509,160
ALL EMPLOYEES OVERALL $46,502 $78,108 $86,271
ALL EMPLOYEES (Excluding Warehouse, $66,432 $118,619 $145,299
Delivery, and Installation Employees)
Detailed Information
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Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
Percentage of Selling Staff Sales from:
Outside Sales 75.0% 90.0% 92.5%
Inside Sales/Telemarketing 25.0% 10.0% 7.5%
Total 100.0% 100.0% 100.0%
SPACE MANAGEMENT MEASURES
Average Number of Locations 0.4 0.6 2.1
Product Sales Per Location * * $8,244,315
Services Revenues Per Location * * $678,066
Total Revenue Per Location * * $9,103,420
Total Revenues Per Square Foot of:
Sales/Retail Space * * $2,068
Warehouse Space-excluding temporary rental $704 $1,459 $616
(Only Includes Firms That Do Not Primarily
Subcontract Warehouse Space)
Office Space $1,979 $3,242 $1,684
Total Space $484 $539 $447
Net Profit Before Tax Per Square Foot of:
Sales/Retail Space * * $55.36
Warehouse Space-excluding temporary rental $3.70 $70.68 $16.90
(Only Includes Firms That Do Not Primarily
Subcontract Warehouse Space)
Office Space $3.51 $126.23 $29.08
Total Space $0.86 $37.84 $10.39
SALES DETAIL
CREDIT SALES
Total Annual Credit Sales (as a % of Total
Revenue) 98.4% 87.9% 99.7%
Market Mix--% of Total Sales from:
Commercial/Contract 20.4% 31.9% 49.3%
Small Business 45.8% 37.8% 13.1%
SoHo 1.9% 1.2% 0.6%
Government 11.0% 11.3% 16.3%
Healthcare 7.3% 9.6% 7.9%
Education 13.7% 8.3% 11.2%
Other 0.0% 0.0% 1.7%
Total Sales 100.0% 100.0% 100.0%
Detailed Information
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Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
Percent of each category's total sales that are for
internet sales:
Office Equipment, Business Machines, & Supplies * * 35.2%
Computer Hardware, Software, & Supplies * * 69.5%
Furniture & Accessories * 12.0% 7.1%
Office Supplies 42.5% 72.0% 66.0%
Janitorial/Warehouse * * 67.5%
Coffee/Breakroom * 61.0% 63.0%
Other Products * * *
Total Sales * * 53.0%
Product Sales as a % of Total Product Sales:
Office Equipment, Business Machines, & Supplies 8.8% 11.1% 22.8%
Computer Hardware, Software, & Supplies 10.5% 7.7% 4.0%
Furniture & Accessories 22.9% 34.3% 39.3%
Office Supplies 40.8% 34.0% 26.1%
Janitorial/Warehouse 8.4% 2.4% 3.8%
Coffee/Breakroom 2.23% 0.76% 2.19%
Other Products 6.4% 9.8% 1.9%
Total Product Sales 100.0% 100.0% 100.0%
Services Revenues as a % of Total Services Revenues:
Delivery & Installation (incl. Services * 51.1% 74.7%
& Intermarket)
Print/Fax/Copy Services * 21.5% 18.8%
Equipment Maintenance Contracts * 19.6% 4.4%
Other Services Revenue * 7.8% 2.2%
Total Services Revenues * 100.0% 100.0%
Product Gross Profit Detail
(i.e., Product Sales Less Product Cost)
Office Equipment, Business Machines, & Supplies 26.5% * 28.6%
Computer Hardware, Software, & Supplies 23.4% * 22.3%
Furniture & Accessories 27.5% 28.5% 23.2%
Office Supplies 26.0% 25.7% 26.4%
Janitorial/Warehouse 26.9% 28.1% 25.2%
Coffee/Breakroom 28.7% * 25.2%
Other Products 37.5% 29.5% 30.7%
Total Gross Profit-Products 27.3% 27.8% 26.2%
Detailed Information
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Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
SALES STAFF TIME SPENT IN SALES
% Time Spent in Sales:
Sales Management 50.9% 68.0% 86.7%
Outside Sales 87.5% 80.9% 98.3%
Inside Sales/Telemarketing 63.3% * 78.1%
Sales Support 42.1% * 63.5%
Customer Service/Order Entry 34.4% 47.0% 61.7%
Other * * 53.6%
TOTAL NUMBER OF EMPLOYEES BY POSITION
Sales Staff Employees
Sales Management 1.1 1.3 1.5
Outside Sales 1.4 3.5 12.5
Inside Sales/Telemarketing 0.6 0.7 0.8
Sales Support 0.7 1.0 4.0
Customer Service/Order Entry 1.1 2.2 6.0
Other 0.0 0.8 1.3
Total Sales Staff Employees 5.0 9.5 26.1
Delivery & Installation Staff Employees
Delivery Staff 0.9 4.5 11.7
Installation Staff 0.6 1.3 8.0
Warehouse Staff 0.6 1.4 7.8
Other Whse, Dlvry & Installation Staff 0.1 0.7 1.0
Total Delivery & Installation Staff Employees 2.3 7.9 28.4
Office/Administrative Staff Employees
Officers/Owners/General Manager 1.7 1.8 2.2
Accounting/Human Resources/Purchasing 0.4 2.0 6.3
ITS Staff 0.1 0.5 0.9
Other Office/Administrative Staff 0.1 0.8 2.3
Total Office/Administrative Staff 2.4 5.1 11.7
Total Employees Overall (Based on All 9.7 22.5 66.1
Respondents)
Total Employees Overall (Excluding Warehouse, 7.4 14.6 37.7
Delivery, and Installation Employees)
Detailed Information
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Number or Full-Time Equivalent Employees
Under 15 FTEs 15-30 FTEs Over 30 FTEs
GENERAL INFORMATION
Company Type
Commercial Dealer with No Retail Stores 58.3% 57.1% 41.7%
Commercial Dealer with Retail Stores 41.7% 42.9% 50.0%
Other 0.0% 0.0% 8.3%
Primary Business Structure
Proprietorship 8.3% 0.0% 0.0%
Partnership 0.0% 0.0% 0.0%
C Corporation 41.7% 14.3% 16.7%
S Corporation 50.0% 57.1% 75.0%
Limited Liability Corp (LLC) 0.0% 28.6% 0.0%
Other 0.0% 0.0% 8.3%
Population of Primary Market Area
Less Than 100,000 25.0% 0.0% 0.0%
100,000 to 250,000 41.7% 33.3% 0.0%
250,000 to 500,000 8.3% 0.0% 8.3%
500,000 to 1 Million 8.3% 0.0% 25.0%
1 - 3 Million 16.7% 50.0% 25.0%
Greater than 3 Million 0.0% 16.7% 41.7%
Avg. Staff Size of Commercial Accounts
Less Than 10 staff 50.0% 0.0% 0.0%
10 to 50 Staff 50.0% 71.4% 63.6%
51 to 100 Staff 0.0% 14.3% 27.3%
101 to 250 Staff 0.0% 14.3% 9.1%
Greater than 250 Staff 0.0% 0.0% 0.0%
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A P P E N D I X
Appendix
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A P P E N D I X
S U R V E Y M E T H O D O L O G Y
In July 2017, National Office Products Alliance (NOPA) distributed a strictly confidential questionnaire to all NOPA Dealer
members. The primary intent of this survey was to collect detailed financial and operating information from member firms by
specific revenue size, population of market area, and other data aggregations of importance. All responses were returned
in strictest confidence to Industry Insights, Inc., the survey research firm that processed and compiled the final results. Once the questionnaires were submitted to Industry Insights, a confidential company identification code was assigned to each
company. The data was then coded, entered into a proprietary system and edited by Industry Insights’ financial analysts for
accuracy and consistency. Computer processing was performed on all data to ensure statistical validity and to produce the
financial and operating ratios contained in this study. In all, 34 companies submitted their surveys to Industry Insights.
The statistical information contained in this report is believed to be representative of the companies responding to the survey. All reasonable efforts were taken by
Industry Insights, Inc. to assure data comparability within the limitations of accounting reporting procedures. However, the data used in this report are not
necessarily based on audited financial statements and the statistical validity of any given number varies depending upon sample sizes and the amount of
consistency among responses for that particular ratio. Industry Insights and NOPA, therefore, make no representations or warranties with respect to the results of
this study and shall not be liable to clients or anyone else for any information inaccuracies, or errors or omissions in contents, regardless of the cause of such
inaccuracy, error or omission. In no event shall Industry Insights and/or NOPA be liable for any consequential damages.
K E Y R A T I O D E F I N I T I O N S
The primary purpose of this NOPA Dealer Financial Comparison and Benchmarking Guide is to provide a basis for
comparing your own firm’s performance with your peers in the industry. In order to do this, it is necessary to calculate your
own ratios using the same methods that were used to compute the ratios in this report. These definitions appear below.
Note: Those companies that participated in this year’s survey automatically received a confidential individualized “Company
Performance Report.” This report presents a participant’s own ratios and data already computed in a manner consistent with
those appearing in the full report, which are displayed alongside the appropriate comparatives. As a result, participating
firms received invaluable information about their own business performance without having to spend time and effort to make
the calculations manually.
Performance Measure Method of Computation OVERALL PROFITABILITY MEASURES
Net Profit Before Taxes as a % of Revenues Net Profit (Loss) Before Taxes Expressed as a % of Total Revenues
Net Profit Before Taxes as a % of Total Assets Net Profit (Loss) Before Taxes Expressed as a % of Total Assets
Net Profit Before Taxes as a % of Net Worth Net Profit (Loss) Before Taxes Expressed as a % of Net Worth or Owner’s Equity
Net Profit Before Interest & Tax as a % of Total Assets Net Profit Before Tax plus Interest Expense Expressed as a % of
Total Assets
EBDIT (i.e., Earnings Before Taxes, Depreciation and
Interest as a % of Total Revenues)
Net Profit Before Tax (i.e., Earnings) plus Interest Expense plus
Depreciation Expenses Expressed as a % of Total Revenues
Operating Profit as a % of Total Revenues Product & Services Gross Profit minus Total Operating Expenses
Expressed as a % of Total Revenues
Appendix
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Performance Measure Method of Computation Gross Profit Product as a % of Total Product Sales Total Product Sales minus Total Product Cost of Goods Sold
Expressed as a % of Total Product Sales
REVENUES SUMMARY
Percent Change in Revenues from Prior Year (Most Recent Year Revenues minus Prior Year Revenues) ÷ Prior
Year Revenues (Expressed as a %)
OVERALL ASSET MANAGEMENT SUMMARY
Asset Turnover Total Revenues ÷ Total Assets
Fixed Asset Turnover Total Revenues ÷ Net Fixed Assets
RECEIVABLES MANAGEMENT
Average Collection Period (i.e., Days Receivables
Outstanding)
Average or Year-End Accounts Receivable ÷ (Total Revenues
÷365)
FINANCIAL MANAGEMENT MEASURES
Interest Expense as a % of Total Revenues Total Interest Paid Expressed as a % of Total Revenues
Current Ratio Current Assets ÷ Current Liabilities
Acid Test (or Quick) Ratio (Cash plus Accounts Receivable) ÷ Current Liabilities
Total Revenues ÷ Net Working Capital (Total Product Sales and Services Revenues) ÷ (Current Assets minus Current Liabilities)
Inventory ÷ Net Working Capital Inventory ÷ (Current Assets minus Current Liabilities)
Days Payables Outstanding (Average Accounts Payable times 365) ÷ Total Product Cost of
Goods Sold
Customer Deposits as a % of Total Revenues Average Customer Deposits Balance ÷ Total Product Sales and Services Revenues
INVENTORY MANAGEMENT
Inventory Turnover Cost of Goods Sold ÷ Average Inventory
Inventory Turnover Days 365 ÷ Inventory Turnover
Average Number of Days to Convert Inventory to Cash Average Inventory ÷ (Cost of Goods Sold ÷ 365)
PERSONNEL MANAGEMENT
Total Employee Compensation Expense as a % of Total
Revenues
Sum of All Employee Compensation for All Departments Expressed
as a % of Total Revenues
Total Outside Labor Cost as a % of Total Revenues Sum of all Outside Labor Costs for All Departments Expressed as
a % of Total Revenues
Total Revenues per Employee Total Product Sales and Services Revenues ÷ the Number of
Employees (in FTEs, or Full-Time Equivalents)
SPACE MANAGEMENT MEASURES
Total Revenues per Square Foot Total Product Sales and Services Revenues ÷ Square Feet of
Space
Net Profit Before Tax per Square foot Net Profit Before Tax ÷ Square Feet of Space
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