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4 Key Analysis Points

By: Benjamin Newlon

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Agenda

Productivity

Financial Ratios

Profit Loss Analysis

Covid Impact Report

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Widener Small Business Development Center

17 Centers in Pennsylvania

Mission: To help businesses start, grow, and prosper

Funded by the Commonwealth of Pennsylvania, the U.S. Small Business Administration, and Widener University

The SBDC provides assistance to both existing and start-up businesses

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Specialty Services

INFORMATION RESEARCH ASSISTANCE

GOVERNMENT CONTRACTING

ENVIRONMENT MANAGEMENT

INTERNATIONAL BUSINESS

COMMERCIALIZATION OF NEW TECHNOLOGY

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Productivity

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Productivity�Cost Benefit analysis

Sales by employee

Average Wage

    • Definition: For every additional employee, how much is the business getting in additional revenue

Marginal Propensity of Labor

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Data Analysis

Food Truck Financial & Market Report

The market area sales per employee vs. the US

Direct revenue growers vs. Backroom workers

Find your employee formula and payment range

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Employee Profile

  • Knowledge and skills
  • Past career path
  • Future career path

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Profit Loss Analysis

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Profit Loss Analysis

  • COGS
  • Operating Expenses

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Talking Point

DO NOT get caught up in the exact numbers

Take the general story the statement illustrates

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Marketing Strategy

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Supply Chain Management

  • Inventory
  • Demand forecasting
  • Purchasing
  • Transportation
  • order processing

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Lowering COGS

  • Buying in Bulk
  • substitute lower cost materials
  • leverage suppliers

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Financial Ratios

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Cash Flow Ratios

  • Key Ratios
    • current ratio
    • quick ratio

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Profitability Ratios

  • Key Ratios:
  • Pre-Tax Return on Assets (ROA)
  • Discretionary Owner Earnings
  • Profit/Employee

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Efficiency Ratios

Key Ratios:

inventory turnover

(cost of goods sold/average inventory)

Fixed Asset Turnover

working capital ratio

([Revenue/Working Capital]

Working capital = Current assets – current liabilities

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COVID Impact Report

  • Pre/post covid employment
  • pre/post monthly sales

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COVID Impact Report

  • Market Area

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SBDC Market Report

Individual market report

Extended detail

Comes with market comparisons

Compare yourself with competitors