This is simply the amount that your inventory is marked up at the stores. The most common one is Initial Markup % (often abbreviated IMU). There are several metrics that you can lump into the category of profitability. It is the second, and arguably the most important, metric of all. Profitability is a group of measurements relating to how much money Walmart made, not just how much money the consumer gave them. ![]() Comp Sales % = (Sales TY of stores open >12 Months - Sales LY) / Sales LY.Sales Variance % = (Sales TY - Budgeted Sales) / Budgeted Sales.% Sales Change = (Sales TY - Sales LY) / Sales LY.Here are some common retail math metrics relating to sales volume: But, what if the reason for the high sales is due to high markdowns? That means that, even though Walmart is selling a lot of your product to the consumer, the profitability that they are realizing is smaller than they were expecting, sometimes significantly! Sales is "how many dollars did the consumer give to Walmart", which is obviously a very important metric!īut, what if this is the only data point you looked at? Sales, in and of itself, can be a very good number in isolation. This is the metric that every supplier searches for first upon learning how to extract data from Retail Link and Decision Support. Walmart breaks everything down into three major metrics: Sales, Profitability, and Asset Efficiency. Now, that's a lot of data to consider! But it isn't as hard to decipher as you might initially think if we approach it from the standpoint of "major metrics". There are dozens and dozens of account metrics that you can use to assess the performance of your account - product sales, margins, ROI, and a host of others.ĭon't believe it? Take a look at the Supplier Performance Scorecard! and thus, to you!ĭownload A Free Retail Math Cheatsheet Walmart Key Performance Indicators The second line is an Exclusion line, which means that any Scenario listed in the second line is effectively enabled (not disabled).This article will discuss some of the more important retail math metrics, the physical calculations, and why they are important to Walmart. Add the Scenario that you want to disable on this line. The first line is the list of Scenarios that should be disabled. ![]() Note that there are two lines in the Member Selector. Select the Consolidation Process tab if it is not already selected.įrom the Local Currency tab, select the Ratios calculation.įrom the right panel, under Disabled Scenarios, click Add Scenario.įrom Select Members, select the Scenario for which you want the calculations disabled, for example, Forecast, and click OK. On the Home page, click Application, then click Consolidation. This option is only available when the Asset Management feature is enabled. ![]() To improve consolidation performance, you can disable the Ratio calculations of "FCCS_Days Sales in Receivables" and "FCCS_Days Sales in Inventory" for selected scenarios if you do not use these calculations. These performance ratios are calculated as follows.ĭays Sales in Inventory = (average inventory/annual cost of sales) * 365Īverage inventory equals the inventory balance of the last 13 periods summed and then divided by 13.Īnnual Cost of Sales equals the sum of Cost of Sales for the current period, plus the preceding 12 periods.ĭays Sales in Receivables = 365/ (annual sales/average receivables)Īverage receivables equals the receivables balance of the last 13 periods summed and then divided by 13.Īnnual sales equal the sum of sales for the current period, plus the preceding 12 periods.Įlimination Adjustment (member for Ownership Management) The two performance Ratios - Days Sales in Inventory, and Days Sales in Receivables, are calculated as part of the consolidation process. Most ratios, including Liquidity Ratios, Asset Management Ratios, Profitability Ratios, and Leverage Ratios, are dynamically calculated as needed.
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