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Vice President B&D Industrial Vice President Bearing Specialists Association
Bri Brian Davis an Davis Vice President B&D Industrial Vice - - PowerPoint PPT Presentation
Bri Brian Davis an Davis Vice President B&D Industrial Vice - - PowerPoint PPT Presentation
BSA Performance Analysis Report (PAR) Bri Brian Davis an Davis Vice President B&D Industrial Vice President Bearing Specialists Association It Was Another Era: 1967-1969 Typical Sales Volume: $1.5 Million Owners
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- Typical Sales Volume: $1.5 Million
- Owner’s Compensation: $54,000
- Outside Sales Compensation:
$12,000
It Was Another Era: 1967-1969
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The Financial Situation Has Changed And Not Necessarily For The Better
1967-1969 2013-2015 Profit Margin (Profit Before Taxes Net Sales ) 3.1 2.7 Ass et Turnover (Net Sales Total Ass ets) 3.2 2.4 Return on Ass ets (Profit Before Taxes Total 10.0 6.5
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1967-1969 2013-2015 Profit Margin (Profit Before Taxes Net Sales ) 3.1 2.7 Ass et Turnover (Net Sales Total Ass ets) 3.2 2.4 Return on Ass ets (Profit Before Taxes Total 10.0 6.5
The Financial Situation Has Changed And Not Necessarily For The Better
Les s Profit on Every Sale
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1967-1969 2013-2015 Profit Margin (Profit Before Taxes Net Sales ) 3.1 2.7 Ass et Turnover (Net Sales Total Ass ets) 3.2 2.4 Return on Ass ets (Profit Before Taxes Total 10.0 6.5
The Financial Situation Has Changed And Not Necessarily For The Better
More Inves tment to Support Sales
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The Financial Situation Has Changed And Not Necessarily For The Better
Very Good Return on Inves tment to an Okay One
1967-1969 2013-2015 Profit Margin (Profit Before Taxes Net Sales ) 3.1 2.7 Ass et Turnover (Net Sales Total Ass ets) 3.2 2.4 Return on Ass ets (Profit Before Taxes Total 10.0 6.5
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The Pressure on Collections and Payments
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The Pressure on Collections and Payments
Being Paid Slower
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The Pressure on Collections and Payments
Paying Suppliers Quicker
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The Pressure on Collections and Payments
Significant change in working capital requirements
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The Pressure on the Income Statement Side of Life
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The Pressure on the Income Statement Side of Life
The Well-Documented Margin Squeeze: Small but Critical
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The Pressure on the Income Statement Side of Life
A Small Offset On Expenses
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The Expense Realities
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The Structure of Payroll Expenses
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The Structure of Payroll Expenses
A Mini-Explosion In Fringe Benefits
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Then Now PPR
(Payroll as a Percent of Gros s
56.5 62.0
One Final Ratio Of Real Concern
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Par Task Force:
- S implified Reporting
- Elimination of unnecessary
questions
- Elimination of the Distributor Report
BSA Performance Analysis Report (PAR)
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65% of BSA members participate
BSA Performance Analysis Report (PAR)
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Participants are grouped:
- Under $50 million
- $50 million to $200 million
- Over $200 million
BSA Performance Analysis Report (PAR)
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Critical Profit Variables
Typical BSA Dist. High Profit BSA
Sales per Employee Measures employee productivity $480,374 $604,804 Gros s Margin Percentage Reflects the ability to manage GOGS 26.0% 26.0% Operating Expens e Percentage Focuses on expense control 23.2% 20.7% Inventory Turnover (times) Reflects how well inventory is managed 3.3 2.8
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Critical Profit Variables
Typical BSA Dist. High Profit BSA
Average Collection Period (days)
Reflects accounts receivable collection practices
44.9 44.9 Profit Before Taxes 2.7% 5.4% Return on Ass ets (pre-Tax) 6.7% 18.4% Return on Net Work (pre-tax %) 12.7 33.1
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Typical BSA Dist. High Profit BSA
Return on Ass ets (pre-tax %)
6.7 18.4
Executive Summary
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Typical BSA Dist. High Profit BSA
Return on Ass ets (pre-tax %)
6.7 18.4
Return on Net Worth (pre-tax %)
12.7 33.1
Executive Summary
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BSA Performance Analysis Report (PAR)
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Product Sales (% of sales)
Typical BSA Dist. High Profit BSA
Mechanical Power Trans mis s ion 26.0 23.5 Bearings 35.2 42.3 Hydraulic and Pneumatic 6.8 3.6 Electrical/Electronic 8.4 12.2 Motion Control 4.0 3.2 Safety/Personal Protection Equipment (PPE) 1.5 0.8 Material Handling/Conveyor Components 5.1 5.0 Services (repair, etc.) 1.3 1.3 Training 0.1 0.0 Other Products (tools & lubricants, etc.) 11.6 8.1
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Employee Turnover %
Typical BSA Dis t. High Profit BSA
5.5 2.9
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Typical BSA Dist. High Profit BSA 18 to 24 $480,374 $604,804 25 to 34 26.0% 26.0% 35 to 44 23.2% 20.7% 45 to 54 3.3 2.8 55 to 64 44.9 44.9 65 and older 2.7% 5.4%
Workforce Age (% of employees)
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