HST 210 Study Guide - Midterm Guide: Corporate Social Responsibility, Inventory Turnover, Asset Turnover
23 Apr 2016
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Backward integration arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private label merchandise. Intratype competition: competition between retailers of the same type (e. g. , Self-gratification, status, respect **most important to smaller retailers. Income statement: measures the profitability of a retailer over a time period (quarter or year) Balance sheet: measures the profitability of a retailer at a point in time (fiscal year end) measured in ratios of: Roa, net profit or expense a multiplier ex. Strategic profit model summarizes the factors found in the income statement and balance sheet that affect a firms financial performance measured in roa. Roa: determines how much profit can be generayed from the retailers investment in assets. Net profit margin profit from each dollar of sales. Asset turnover sales dollars per dollars of assets. Roa = net profit/ net sales x (net sales/total assets) Profit path: profit margin is low fast inventory turnover ex.
