Average Profit per Store

About

Average Profit per Store is a financial metric used by Franchises, Groups and Retailers with multiple shopfronts to calculate the value of past and the benefit of future expansion.A higher figure is desired, whilst a lower figure may indicate that profits are being hindered by poor performance in particular locations. High average profit should be seen as a marker that the business is well positioned to grow its revenue base further by adding to its portfolio of stores.

Making the KPI

Step One

To create Average Profit per Store you will need to know:

  1. Total Profit
  2. Number of Stores

Total Profit is a financial metric, which should be calculated using financial data pulled directly from your accountancy platform of choice. Number of Stores is a Non-financial metric which should be uploaded into FUTRLI via CSV.

Step Two

Once you’ve got the necessary ingredients, you can calculate Average Profit per Store by dividing Total Profit by your Number of Stores.

Screen Shot 2016-04-14 at 11.23.13

Step Three

In the example below, we’re viewing our Average Profit per Store¬†against a rolling 6-month trend, in order to get a clearer picture of performance.

Screen Shot 2016-04-14 at 11.24.25

 

How helpful was this article?

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...