Financial Analysis Peer and Industry Benchmarking Strictly Confidential

Table of Contents

Profitability
Utilization
Leverage
Growth

© 2015 to 2023 CFI Education Inc.

This Excel model is for educational purposes only and should not be used for any other reason. All content is Copyright material of CFI Education Inc.
All rights reserved. The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected
under international copyright and trademark laws. No part of this publication may be modified, manipulated, reproduced, distributed, or transmitted in any
form by any means, including photocopying, recording, or other electronic or mechanical methods, without prior written permission of the publisher,
except in the case of certain noncommercial uses permitted by copyright law.

https://corporatefinanceinstitute.com/
All figures in USD thousands unless stated Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Average

Return on Equity
Small Retailer 0.41% 4.81% 7.56% 11.59% 6.32% 9.62% 10.08% 16.20% 8.32%
Mid Retailer 16.73% 22.39% 19.46% 24.86% 24.49% 24.00% 21.89% 28.51% 22.79%
Large Retailer 20.10% 18.24% 17.54% 12.66% 9.20% 19.93% 16.69% 16.42% 16.35%
Industry 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Gross Margin
Small Retailer 28.21% 31.15% 31.72% 32.72% 33.73% 35.97% 35.26% 36.48% 33.15%
Mid Retailer 13.50% 13.99% 14.38% 14.35% 14.03% 13.95% 14.07% 13.79% 14.01%
Large Retailer 26.71% 27.09% 27.72% 27.48% 27.17% 26.79% 26.82% 26.96% 27.09%
Industry 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%

EBITDA Margin
Small Retailer 5.01% 7.03% 7.84% 8.26% 7.63% 9.98% 9.41% 10.53% 8.21%
Mid Retailer 3.77% 4.09% 4.15% 4.25% 4.18% 4.08% 4.25% 4.33% 4.14%
Large Retailer 7.39% 6.88% 6.63% 5.43% 4.62% 6.33% 6.03% 5.40% 6.09%
Industry 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%

EBIT Margin
Small Retailer 1.55% 3.53% 4.51% 4.89% 4.22% 4.73% 4.49% 5.52% 4.18%
Mid Retailer 2.86% 3.12% 3.09% 3.19% 3.16% 3.10% 3.26% 3.42% 3.15%
Large Retailer 5.50% 4.92% 4.55% 3.33% 2.54% 4.24% 4.04% 3.54% 4.08%
Industry 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

Net Profit Margin

Small Retailer 0.12% 1.39% 2.12% 3.26% 1.64% 2.25% 2.10% 3.53% 2.05%
Mid Retailer 1.83% 2.05% 1.98% 2.08% 2.21% 2.40% 2.40% 2.56% 2.19%
Large Retailer 3.37% 3.05% 2.81% 1.97% 1.30% 2.84% 2.42% 2.39% 2.52%
Industry 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25%
 Return on Equity Gross Margin
30.00%
40.00%
25.00% 35.00%
30.00%
20.00%
25.00%
15.00%
20.00%
10.00% 15.00%
10.00%
5.00%
5.00%
-
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 -
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Small Retailer Mid Retailer Large Retailer Industry

Small Retailer Mid Retailer Large Retailer Industry

EBITDA Margin EBIT Margins

12.00% 6.00%

10.00% 5.00%

8.00% 4.00%

6.00% 3.00%

4.00% 2.00%

2.00% 1.00%

- -
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Small Retailer Mid Retailer Large Retailer Industry Small Retailer Mid Retailer Large Retailer Industry

Net Profit Margin

4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
-
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Small Retailer Mid Retailer Large Retailer Industry

All figures in USD thousands unless stated Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Average

Asset Turnover
Small Retailer 1.27x 1.34x 1.35x 1.51x 1.54x 1.52x 1.66x 1.65x 1.48x
Mid Retailer 3.41x 3.47x 3.58x 3.55x 3.47x 3.36x 3.00x 3.31x 3.39x
Large Retailer 2.38x 2.42x 2.44x 2.45x 2.35x 2.22x 2.21x 2.34x 2.35x
Industry 2.00x 2.00x 2.00x 2.00x 2.00x 2.00x 2.00x 2.00x 2.00x

Cash Days
Small Retailer 8.7 days 8.7 days 12.2 days 18.4 days 9.1 days 9.0 days 13.4 days 16.8 days 12.0 days
Mid Retailer 23.7 days 20.2 days 14.5 days 16.3 days 18.7 days 22.6 days 29.1 days 22.7 days 21.0 days
Large Retailer 6.9 days 6.6 days 5.2 days 4.9 days 5.5 days 6.6 days 11.6 days 9.4 days 7.1 days
Industry 10.0 days 10.0 days 10.0 days 10.0 days 10.0 days 10.0 days 10.0 days 10.0 days 10.0 days

A/R Days
Small Retailer 2.0 days 2.7 days 1.8 days 2.0 days 2.0 days 1.8 days 2.2 days 4.4 days 2.4 days
Mid Retailer 5.9 days 6.2 days 4.7 days 4.8 days 5.1 days 6.3 days 5.6 days 5.8 days 5.6 days
Large Retailer 5.1 days 4.3 days 4.4 days 4.1 days 4.5 days 4.4 days 4.3 days 5.3 days 4.5 days
Industry 4.0 days 4.0 days 4.0 days 4.0 days 4.0 days 4.0 days 4.0 days 4.0 days 4.0 days

Inventory Days
Small Retailer 51.4 days 50.5 days 50.4 days 51.7 days 56.7 days 60.2 days 55.6 days 55.8 days 54.0 days
Mid Retailer 31.7 days 32.5 days 32.2 days 32.5 days 33.1 days 31.7 days 31.2 days 30.7 days 31.9 days
Large Retailer 48.6 days 47.7 days 46.8 days 47.6 days 46.7 days 43.8 days 58.7 days 50.6 days 48.8 days
Industry 45.0 days 45.0 days 45.0 days 45.0 days 45.0 days 45.0 days 45.0 days 45.0 days 45.0 days

A/P Days
Small Retailer 55.7 days 41.1 days 40.1 days 41.0 days 41.4 days 40.4 days 37.3 days 37.3 days 41.8 days
Mid Retailer 54.0 days 47.9 days 44.5 days 49.2 days 51.1 days 51.5 days 54.2 days 53.4 days 50.7 days
Large Retailer 60.1 days 60.9 days 65.5 days 69.3 days 67.9 days 66.2 days 77.9 days 71.7 days 67.4 days
Industry 45.0 days 45.0 days 45.0 days 45.0 days 45.0 days 45.0 days 45.0 days 45.0 days 45.0 days

Cash Conversion Cycle / WC Funding Gap

Small Retailer (2.3)days 12.1 days 12.1 days 12.7 days 17.2 days 21.6 days 20.6 days 22.9 days 14.6 days
Mid Retailer (16.4)days (9.2)days (7.6)days (11.9)days (12.9)days (13.5)days (17.4)days (16.8)days (13.2)days
Large Retailer (6.4)days (8.9)days (14.3)days (17.6)days (16.7)days (18.0)days (15.0)days (15.8)days (14.1)days
Industry 4.0 days 4.0 days 4.0 days 4.0 days 4.0 days 4.0 days 4.0 days 4.0 days 4.0 days
 Asset Turnover Cash Days
4.00x
35.0 days
3.50x
30.0 days
3.00x
25.0 days
2.50x
2.00x 20.0 days

1.50x 15.0 days

1.00x 10.0 days
0.50x 5.0 days
–
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 –
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Small Retailer Mid Retailer Large Retailer Industry

Small Retailer Mid Retailer Large Retailer Industry

A/R Days Inventory Days

7.0 days 70.0 days

6.0 days 60.0 days

5.0 days 50.0 days

4.0 days 40.0 days

3.0 days 30.0 days

2.0 days 20.0 days

1.0 days 10.0 days

– –
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Small Retailer Mid Retailer Large Retailer Industry Small Retailer Mid Retailer Large Retailer Industry

A/P Days Cash Conversion Cycle / WC Funding Gap

90.0 days 30.0 days
80.0 days
70.0 days 20.0 days
60.0 days
10.0 days
50.0 days
40.0 days –
30.0 days Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
(10.0)days
20.0 days
10.0 days (20.0)days
–
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 (30.0)days

Small Retailer Mid Retailer Large Retailer Industry Small Retailer Mid Retailer Large Retailer Industry

Financial Analysis Peer and Industry Benchmarking Page 5 of 9

All figures in USD thousands unless stated Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Average

Debt to Equity
Small Retailer 1.27x 1.19x 1.26x 0.96x 1.06x 1.33x 1.40x 1.31x 1.22x
Mid Retailer 0.51x 0.71x 0.55x 0.76x 0.64x 0.57x 0.68x 0.74x 0.65x
Large Retailer 0.78x 0.75x 0.75x 0.74x 1.06x 1.24x 1.04x 0.95x 0.91x
Industry 1.00x 1.00x 1.00x 1.00x 1.00x 1.00x 1.00x 1.00x 1.00x

Debt to EBITDA
Small Retailer 7.60x 4.91x 4.50x 3.26x 3.60x 3.12x 3.11x 2.72x 4.10x
Mid Retailer 1.48x 1.59x 1.34x 1.49x 1.38x 1.38x 1.77x 1.54x 1.50x
Large Retailer 1.78x 1.82x 1.80x 2.13x 3.25x 2.78x 2.50x 2.57x 2.33x
Industry 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x

Debt to Equity Debt to EBITDA

1.60x
8.00x
1.40x
7.00x
1.20x
6.00x
1.00x
5.00x
0.80x
4.00x
0.60x
3.00x
0.40x
2.00x
0.20x
1.00x
–
1 2 3 4 5 6 7 8 –
1 2 3 4 5 6 7 8

Small Retailer Mid Retailer Large Retailer Industry

Small Retailer Mid Retailer Large Retailer Industry
All figures in USD thousands unless stated Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Average

Current
Small Retailer 0.87x 0.79x 0.89x 0.81x 0.71x 0.70x 0.85x 0.90x 0.82x
Mid Retailer 1.22x 1.05x 0.98x 0.99x 1.02x 1.01x 1.13x 1.00x 1.05x
Large Retailer 0.97x 0.93x 0.86x 0.76x 0.80x 0.79x 0.97x 0.93x 0.88x
Industry 0.90x 0.90x 0.90x 0.90x 0.90x 0.90x 0.90x 0.90x 0.90x

Quick
Small Retailer 0.20x 0.20x 0.26x 0.30x 0.16x 0.15x 0.26x 0.34x 0.23x
Mid Retailer 0.63x 0.51x 0.40x 0.43x 0.46x 0.52x 0.64x 0.52x 0.51x
Large Retailer 0.24x 0.22x 0.19x 0.16x 0.18x 0.20x 0.26x 0.26x 0.22x
Industry 0.30x 0.30x 0.30x 0.30x 0.30x 0.30x 0.30x 0.30x 0.30x

Current Ratio Quick Ratio

1.40x 0.70x
1.20x 0.60x
1.00x 0.50x
0.80x 0.40x
0.60x 0.30x
0.40x 0.20x
0.20x 0.10x
– –
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8

Small Retailer Mid Retailer Large Retailer Industry Small Retailer Mid Retailer Large Retailer Industry
All figures in USD thousands unless stated Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Average

Revenue Growth
Small Retailer 6.53% 2.18% 0.44% 0.23% 2.88% 9.74% 0.87% 3.27%
Mid Retailer 3.16% 2.17% 8.68% 9.73% 7.86% 9.21% 17.49% 8.33%
Large Retailer (0.73%) 0.78% 2.98% 2.81% 1.86% 6.72% 2.43% 2.41%
Industry 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

EBITDA Growth
Small Retailer 49.63% 13.84% 5.86% (7.43%) 34.59% 3.48% 12.90% 16.12%
Mid Retailer 11.81% 3.70% 11.24% 7.95% 5.27% 13.66% 19.90% 10.51%
Large Retailer (7.52%) (2.95%) (15.61%) (12.55%) 39.71% 1.57% (8.28%) (0.80%)
Industry 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%

Net Income Growth

Small Retailer 1092.45% 55.54% 54.32% (49.51%) 41.12% 2.50% 69.22% 180.81%
Mid Retailer 15.50% (1.14%) 14.00% 16.98% 16.75% 9.37% 25.11% 13.80%
Large Retailer (10.20%) (7.15%) (27.71%) (32.37%) 123.10% (9.21%) 1.21% 5.38%
Industry 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Total Asset Growth

Small Retailer 0.76% 1.46% (10.39%) (2.02%) 4.19% 0.87% 1.41% (0.53%)
Mid Retailer 1.26% (0.83%) 9.60% 12.33% 11.19% 22.37% 6.68% 8.94%
Large Retailer (2.02%) (0.38%) 2.87% 7.22% 7.84% 6.77% (3.02%) 2.75%
Industry 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%
 Revenue Growth EBITDA Growth
20.00%
60.00%

15.00% 50.00%
40.00%
10.00% 30.00%
20.00%
5.00%
10.00%
0.00% 0.00%
-10.00%
-5.00%
-20.00%
1 2 3 4 5 6 7 8
1 2 3 4 5 6 7 8

Small Retailer Mid Retailer Large Retailer Industry

Small Retailer Mid Retailer Large Retailer Industry

Net Income Growth Total Asset Growth

300.00% 25.00%
250.00% 20.00%
200.00% 15.00%
150.00% 10.00%
100.00% 5.00%
50.00% 0.00%
0.00% -5.00%
-50.00% -10.00%
-100.00% -15.00%
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8

Small Retailer Mid Retailer Large Retailer Industry Small Retailer Mid Retailer Large Retailer Industry