STRATA:G^® Financial Calculators

Helping pros grow advisory revenue

Use when sitting with a retailer, in person or virtually.

Non-threatening, engaging tools prompt questions, and insights.

And the beginning of a new business connection!

✅  Try these "Conversation Starters" for yourself, take a "TEST DRIVE" with someone in your office.

Here is another unique retail financial conversation-starter tool: the Financial Strength Rater. Once again, it reflects the Retail STRATA-G focus on the Balance Sheet (a contrast to the typical retailer's focus on "top line sales" and "the bottom line.")

When sitting with a retailer (or meeting via video conference), use this tool to explore how resiliant their business might be. How much adversity might it withstand?

• Quickly see the trend of the "vital signs" of their business; is each one up or down, slightly or substantially?
   
• What does that mean? Get a score of 1 to 5 for each one, pinpointing areas of strength as well as potential trouble spots.
   
• And, see what the overall total suggests about the resilience of the business moving forward.

To see it in action, just go to the Retail Benchmarks section. Choose a specific retail vertical, and use the most recent two years of their ratios. 

ℹ️ more info on The ROI site

Here's another example of a non-threatening "conversation starter" with a retailer. Given their average inventory level throughout the year, how do their sales compare to other retailers in their vertical?

The Index of Sales Potential has the answer. Just enter their average inventory @cost for the year, choose a retail segment to compare with, and find out!

Then, be prepared for the ensuing discussion, when asked "What does this mean?"

You and your client wil not only see annual sales volume for other retailers, but also the Gross Margin % and Inventory Turmnover rate for the median performing retailer.  

See how quickly some important financial drivers of a retail business have surfaced? 

ℹ️ more info on The ROI site

Here is a fast, simple, and extremely telling measure of a retailer's financial viability!

Calculating GMROI enables any retailer to quickly assess their effectiveness at managing their largest asset: their inventory.

Now, thanks to our unique GMROI Growth & Bankability Rater, any retailer can see how their productivity compares to the average performing retailer in their segment. Get a quick comparison of retail financial viability. 

This proprietary tool works for any retail operation, from $2 million to $2 billion, no matter the merchandise they sell.

What It Can Reveal

GMROI Higher than Average?
Retailers whose GMROI is higher than the average for their segment are managing their inventory more efficiently and achieving greater productivity than their peers. 

These retailers are financially stronger than the others in their segment.

GMROI Lower than Average?
Conversely, a retailer whose GMROI is lower than the average for their segment is very likely to be in a cash crunch, or approaching one.

Reminders

• GMROI is best used as a comparative measure; compare stores, or departments, or even vendors.
• GMROI reflects both margins and turns, and therefore reflects the financial dynamics in retailing.
• There is no one right answer for what GMROI "should" be. Given the variety of margins and turns between retailers in different segments, there are significant differences in average GMROI between specific retail segments.

Quick • Verifiable • Sophisticated • Uniquely Retail

ℹ️ more info on The ROI site