RETAIL MATH
| Product (Stock) |
|---|
| Average Inventory = (Opening Stock + Closing Stock) / 2 |
| Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory |
| Stock Turnover Ratio = Sale / Average Inventory |
| Cost of Goods Sold Percentage (COGS %) = (Cost of Goods Sold / Total Sales) x 100 |
| Days Inventory Outstanding (DIO) = (Average Inventory / Cost of Goods Sold) x Number of Days |
| Inventory Days = (Average Inventory / Cost of Goods Sold per Day) |
| Inventory Shrinkage % = (Physical Inventory Losses / Total Sales) x 100 |
| Inventory Turnover in Days = (Inventory / Cost of Goods Sold) x Number of Days |
| Reorder point = (Average Daily Sale x Lead time) + Safety Stock |
| Safety Stock = (Maximum Daily Usage x Maximum Lead Time) - (Average Daily Usage x Average Lead Time) |
| Cost of goods sold = Beginning inventory + Purchases - Ending inventory |
| Sell-Through % = (Total Units Sold / Total Units Received) x 100 |
| Sell-Through Rate = Units Sold / Units Received |
| Shrinkage % = (Value of Inventory Losses / Total Sales) x 100 |
| Store Traffic Conversion Rate = Number of Purchases / Number of Store Visitors x 100 |
| Total Asset Turnover = Total Sales / Total Assets |
Profit (Margin) |
|---|
| Gross Margin % = Gross Profit / Total Sales x 100 |
| Gross Margin = (Gross Sales - Cost of Goods Sold) / Gross Sales |
| Gross Margin Return on Investment (GMROI) = Gross Margin / Average Inventory Cost |
| Gross Profit Margin % = Gross Profit / Total Revenue x 100 |
| Gross Profit per Customer (GPC) = Total Gross Profit / Number of Customers |
| Gross Profit per Square Foot = Gross Profit / Selling Area in Square Feet |
| Gross Sales = Net Sales / (1 - Gross Margin %) |
| Margin = (Revenue - Cost) / Revenue x 100 |
| Markdown % = (Original Price - Markdown Price) / Original Price x 100 Markdown Price = (Selling Price - New Selling Price) / Selling Price |
| Markup = (Retail Price - Cost) / Cost x 100 |
| Profit Margin = Net Profit / Total Revenue x 100 |
 Purchase |
|---|
| Average Order Value (AOV) = Total Sales / Number of Orders |
| Economic Order Quantity (EOQ) = sqrt((2 x Annual Demand x Ordering Cost) / Holding Cost per Unit) |
| Open-to-Buy (OTB) = Planned Sales - Planned Inventory + Planned Markdowns |
| Operating Margin = Operating Income / Total Revenue |
| Order Fulfillment Cost = Total Order Fulfillment Costs / Number of Orders |
| Purchase order quantity = Economic order quantity - Current inventory level |
Price (Discount) |
|---|
| Debt to Equity Ratio = Total Debt / Total Equity |
| Retail Markup % = (Retail Price - Cost Price) / Cost Price x 100 |
| Retail price = Cost of goods sold / (1 - Desired gross margin percentage) |
| Return on Assets (ROA) = Net Income / Total Assets |
| Return on Equity (ROE) = Net Income / Shareholder's Equity |
| Return on Investment (ROI) = (Net Profit / Total Investment) x 100 |
People (Wages) |
|---|
| Employee Turnover Rate = Number of Employees who left / Average Number of Employees x 100 |
| Sales per Employee = Total Sales / Total Employees |
| Sales Per Employee Hour = Total Sales / Total Employee Hours |
| Sales Per Labor Hour = Total Sales / Total Labor Hours |
Sale |
|---|
| Average Selling Price (ASP) = Total Sales / Total Units Sold |
| Average Transaction Value (ATV) = Total Sales / Total Transactions |
| Return on Sales (ROS) = Net Income / Total Sales |
| Sales Growth % = (Current Year Sales - Previous Year Sales) / Previous Year Sales |
| Sales Mix % = (Sales of Product A / Total Sales) x 100 |
| Sales Velocity = Number of Units Sold / Time Period |
| Sell-Through Rate = (Number of Items Sold / Beginning Inventory) x 100 |
| Return on Investment (ROI) = (Net Profit / Total Investment) x 100 |
| Weeks of Cover = (Current Stock Level / Average Weekly Sales) |
| Turnover = Cost of goods sold / Average inventory |
| Return on Investment (ROI) = (Net Profit / Total Investment) x 100 |
| Conversion Rate = Total Transactions / Total Store Traffic |
| Customer Acquisition Cost (CAC) = Total Sales and Marketing Spend / Number of New Customers Acquired |
| Customer Lifetime Value (CLTV) = Average Order Value x Number of Repeat Purchases x Average Customer Lifespan |
| Conversion Rate = Total Transactions / Total Store Traffic |
| Average Margin = Gross Margin / Total Sales x 100 |
| Sales Conversion Rate = (Number of customers who make a purchase / Number of potential customers) x 100% |
| Average Order Value (AOV) = Total sales revenue / Number of orders |
| Sales Productivity = Total sales revenue / Number of sales representatives |
| Sales Forecast Accuracy = (|Forecasted sales - Actual sales| / Actual sales) x 100% |
| Customer Satisfaction Score = (Number of satisfied customers / Total number of customers) x 100% |
| Sales-to-Marketing Ratio = Sales expenses / Marketing expenses |
| Sales Target Achievement Rate = (Actual sales / Sales target) x 100% |
Gross Margin |
|---|
| Gross Margin Return on Investment (GMROI) = Gross Margin value / Average Inventory Cost |
| Gross Margin Return on Footage (GMROF) = Sale Per SQFT * Margin% |
| Gross Margin Return on Selling Area (GMROS) = Gross Margin Value / Selling Area |
| Gross Margin Return on Floor Space (GMROF) = Sale Per SQFT * Margin% |
| Gross Margin Return on Labor (GMROL) = Gross Margin / Labor Cost |
| Gross Margin value= (Gross Sales value - Cost of Goods Sold) |
| Stock Turnover Days = No. of Days in Year / Inventory Turnover ratio |
Logistic |
|---|
| Order Fulfillment Cycle Time = Order Delivery Date - Order Placement Date |
| Order Accuracy = (Number of Accurate Orders / Total Number of Orders) x 100 |
| Warehouse Capacity Utilization = (Total Warehouse Capacity - Available Warehouse Capacity) / Total Warehouse Capacity |
| Transportation Cost per Unit = Total Transportation Costs / Total Number of Units Transported |
| On-time Delivery = (Number of On-time Deliveries / Total Number of Deliveries) x 100 |
| Backorder Rate = (Number of Backorders / Total Number of Orders) x 100 |
| Delivery Time Variance = Standard Deviation of Delivery Times / Average Delivery Time |
| Freight Cost Ratio = Total Freight Costs / Cost of Goods Sold |
| Perfect Order Rate = (Number of Perfect Orders / Total Number of Orders) x 100 |
| Lead Time = Order Delivery Date - Order Placement Date |
| Order Tracking Capability = (Number of Orders with Real-time Updates / Total Number of Orders) x 100 |
| Cost of Carrying Inventory = (Average Inventory Level x Cost of Carrying Inventory per Unit) / 365 |
| Shipment Damage Rate = (Number of Damaged Orders / Total Number of Orders) x 100 |
| Inventory Accuracy = (Actual Inventory / Recorded Inventory) x 100 |
| Order Lead Time = Order Ready for Shipment Date - Order Placement Date |
| Perfect Delivery Rate = (Number of Perfect Deliveries / Total Number of Deliveries) x 100 |
| Supply Chain Cycle Time = Order Delivery Date - Order Placement Date |
| Inventory Holding Cost = Average Inventory x Inventory Holding Cost per Unit |
| Delivery in Full, On Time (DIFOT) Rate = (Number of Deliveries in Full and On Time / Total Number of Deliveries) x 100 |
| Order Fulfillment Time = Order Shipment Date - Order Receipt Date |
| Transit Time = Delivery Date - Shipment Date |
| Order Accuracy = (Number of Accurate Orders / Total Number of Orders) x 100 |
| On-Time Delivery Rate = (Number of On-Time Deliveries / Total Number of Deliveries) x 100 |
| Delivery Performance Index (DPI) = (On-Time Delivery Rate x Quantity and Quality of Delivered Products) / 100 |
| Freight Cost per Order = Total Freight Cost / Total Number of Orders Shipped |
| Capacity Utilization = (Actual Logistics Capacity Used / Total Logistics Capacity) x 100 |
Place (Space) |
|---|
| Sales Per Square Foot = Total Sales / Total Selling Space |
| Sales per Square Meter = Total Sales / Selling Area in Square Meters |
| Sale per Fixture = Sale / Number of Fixtures. |
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