BizMarkets2Go Metrics

SELECTION PARAMETERS: Due to speed and display constraints, BizMarkets2Go input and report selections conform to these parameters:

Radius: 250 mile radius/500 mile circular market area or less

Industry Map: The map will not display if there are >5,000 locations in the selected radius.

Industry Locations Maximum: Market radius selections must have <10,000 selected industry operations

Industry Location Listings: The Competitive Industry Locations list displays the closest of up to 250 entities from the selected market center within the market radius.

 

MARKET AREA INDUSTRY LOCATIONS: Industry competitor entities are displayed in both the mapping and competitor list segments.

Industry Map: Integrates BizMarkets2Go industry data with Google mapping. Note that Current Location accuracy is limited on most desktop computers; when working on a desktop or laptop, Drop Pin or Address Input options are recommended to determine your market center point. Note that the map will not display if there your selections include >5,000 industry operations (other data will display).

Competitive Industry Locations from Your Market Area Center Point: Locations for the selected industry within your market radius are listed here; listings include distance from the market center point and estimated sales for each operation. List are limited to distances for up to 250 locations (the closest 250 to the center point) and sales for up to 100 (the closest 100 to the center point).

Business Lists: Where available, business lists for all locations within your market radius are offered at an additional charge. In general, lists include business name, address, employment, estimated sales, contact name and phone number (not available for all entities).

 

INDUSTRY PERFORMANCE METRICS: Industry performance metrics, including market locations, employment and sales are refreshed monthly.

Sales per Household and Sales per Person: Both Sales per Household and Sales per Person are integrated metrics using both our Industry Performance metrics and values from the Demographic Highlights sourced from the American Community Survey. Sales are geo-based while demographics are based on zip codes which overlap the customer-defined market radius.

Estimated Competitor Sales: Competitor sales are based on reported employment and sales per employee data projected for the selected industry.

Industry Locations, Employment, Total Industry Sales and Average Industry Sales: These metrics are all specific to the selected industry and market radius.

Client Sales Rank: Displays only if client sales are input. The rank reflects the sales level of the client against sales of competitor industry operations within the selected market radius, for example “3/51”.

Client Variance from Average Sales: Displays only if client sales are input. Reflects the (plus/minus) percentage difference of inputted client sales against the average industry sale figure in the selected market area.

Client Sales per Employee: Auto-calculated from input client sales and employment; displays only if both are input.

Client Sales per Employee Variance from Industry: Displays only if client sales and employment are input. Reflects the (plus/minus) percentage difference of client sales per employee against the average industry sale per employee figure in the selected market area.

 

DEMOGRAPHIC HIGHLIGHTS: All demographic highlight values with the exception of Sales per Household and Sales per Person are sourced from the American Community Survey. Since US Census demographics are not published on a geo-coded basis, demographic data is applied at the level of aggregated zip codes which are co-joined to the selected market radius.

 

US INDUSTRY FINANCIAL BENCHMARKS: Financial ratios are based on national benchmarks and are refreshed twice a year. Benchmarks are specific to the selected industry and sales class peer group.

Discretionary Owner Earnings: Sums Officer Compensation, Depreciation and related non-cash expenses and Net Profit after business taxes to represent a practical measure of total return to owners. The D.O.E. metric is mainly used for small businesses.

Return on Business Revenue: Pre-Tax Net Profit Net Profit divided by Annual Business Revenue, indicating the level of profit from each dollar of Business Revenue.

Return on Net Worth: Pre-Tax Net Profit divided by Net Worth. This is the 'final measure' of profitability to evaluate overall return.

Return on Assets: Pre-Tax Net Profit divided by Total Assets, a critical indicator of profitability. Companies which use their assets efficiently will tend to show a ratio higher than the industry norm. The ratio may appear higher for small businesses due to owner compensation draws accounted as net profit.

Current Liabilities:Net Worth: Current Liabilities divided by Net Worth, reflecting a level of security for creditors. The larger the ratio relative to industry norms, the less security there is for creditors.

Long-Term Liabilities:Net Worth: Debt deferred for more than one year divided by Net Worth, reflecting a level of security for creditors. The larger the ratio relative to industry norms, the less security there is for creditors.

EBITDA: Earnings Before Interest, (income) Taxes due, Depreciation and Amortization divided by Business Revenue. EBITDA is used to eliminate the effect of finance and accounting decisions when comparing companies and industry benchmarks. Tax credits and deferral procedures and non-cash expenditures (Amortization and Depreciation) are not deducted from the profit equation, as are interest expenditures.

Quick Ratio: Cash plus Accounts Receivable, divided by Current Liabilities, indicating liquid assets available to cover current debt. Also known as the Acid Ratio. This is a harsher version of the Current Ratio, which balances short-term liabilities against cash and liquid instruments.

Current Ratio: This is the same as Current Assets divided by Current Liabilities, measuring current assets available to cover current liabilities, a test of near-term solvency. The ratio indicates to what extent cash on hand and disposable assets are enough to pay off near term liabilities. The Quick Ratio is applied as a more stringent test.

Days Receivables: 365/ (Sales/Receivables): Reflects the number of days that receivables are outstanding.

Days Payable: 365/(Cost of Sales: Accounts Payable ratio): Reflects the average number of days for each payable before payment is made.

Days Inventory: 365/(Cost of Sales: Inventory): The average number of days of items in inventory.

Rent-to-Sales: Rent as a percentage of Business Revenue.

Rent per Employee: Sales per employee multiplied by the Rent-to-Sales percentage.