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Spalatorie Auto

Soapy Rides is a car wash business starting in East Meadow, Long Island. It will offer exterior washing, interior cleaning, and detailing services. The owner, Mark Deshpande, comes from a family with over 30 years of experience in the automotive industry in the area. Soapy Rides aims to gain market share by providing high quality service at a reasonable price. The target customer base includes individual car owners, dealerships, and local businesses in the affluent area. Mark forecasts 20% market share and growing profits over the first three years of operation.

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0% found this document useful (0 votes)
65 views17 pages

Spalatorie Auto

Soapy Rides is a car wash business starting in East Meadow, Long Island. It will offer exterior washing, interior cleaning, and detailing services. The owner, Mark Deshpande, comes from a family with over 30 years of experience in the automotive industry in the area. Soapy Rides aims to gain market share by providing high quality service at a reasonable price. The target customer base includes individual car owners, dealerships, and local businesses in the affluent area. Mark forecasts 20% market share and growing profits over the first three years of operation.

Uploaded by

mindrumihai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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.

Executive Summary

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1.0 Executive Summary [back to top]

Soapy Rides is a prominent hand car wash serving the East Meadow, Long Island, NY
community. Soapy Rides will be run by Mark Deshpande, of the prominent Deshpande family.
The Deshpande family has been serving the Long Island area with a car repair business and
property development /management for over 30 years. Mark will be leveraging the incredible
good will and brand recognition of the Deshpande family name to quickly gain market penetration.

The Business

Soapy Rides will be providing customers with three services: exterior car washing, , interior
cleaning, and detailing. Soapy Rides has no true competitors that are trying to offer a high quality
service for a reasonable rate. Most are trying to compete on price alone. Soapy Rides' ability to
provide a high quality service, both in regards to the actual washing as well as customer service
is all based on their ability to find the best employees. Hiring the best employees is cost effective
because it decreases HR costs associated with turnover and other employee costs. Hiring the
best employees and making sure that they are well taken care of ensures that they in turn take
care of the customers. Study after study proves that a happy employee is far more likely to
provide the highest level of customer service compared to an employee who is not happy and
feels that they are being taken advantage of.

The Customers

Soapy Rides will target three main groups of customers: individual car owner and leasers, car
dealerships, and local businesses. The surrounding area is quite affluent, 40% of the residents
earn over $70,000 a year. Consequently, they have nice cars and want them to look nice. There
are five different car dealerships within a three-mile radius which will require car washing services
for the various fleets. Lastly, there are many different local businesses that have company cars
and that require clean appearances.

Management

The strength of Mark's experience and his family's name equity and assistance is Soapy
Rides' competitive edge as well as a significant asset. Mark has been involved in the family's car
repair business for the last ten years. He has worked his way through the organization and has
been the manager for the last five years overseeing operations of $1.2 million annually. Before
the family venture, Mark received his MBA from Cornell University. With 30 years invested in the
community, the Deshpande family name has generated significant value as a fair, active member
of the community. Lastly, Soapy Rides will be able to leverage several of the Deshpande's for
their business expertise.

Soapy Rides is positioning itself as the premier hand car wash serving the Long Island area. Mark
has forecasted a 20% market share. The business will generate a 95% gross margin and an 11%
net margin after year one and 20.79% after year three. By year three the business will have
developed a yearly net profit of $48,000 .
Highlights

Click to Enlarge

1.1 Objectives [back to top]

The objectives for Soapy Rides Car Wash and Detail Service are:

1. To be viewed as a premium car wash and detail service in East Meadow.


2. Maintain a gross profit margin of over 95%.
3. Maintain a net profit margin of 10-15%.
4. Expand to two locations after third year of operation.

1.2 Mission [back to top]

The mission of Soapy Ride is to provide top-quality washing and detail service for luxury car
owners in East Meadow, NY. Soapy Rides will work to keep employees satisfied in order to
maintain impeccable customer service.

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2. Company Summary

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2.0 Company Summary [back to top]

The company is solely owned by Mark Deshpande and will be funded by an initial
investment of $30,000. Soapy Rides is New York State registered C corporation.

2.1 Company Ownership [back to top]

The company will be solely owned by Mark Deshpande. Mark has been in the car
industry all his life, having grown up in the family car repair business. He came across
the location in East Meadow purely by accident and he felt it would be a perfect location
for a car wash service. 

2.2 Start-up Summary [back to top]

The start-up expenses for Soapy Rides will be financed by Mark Deshpande, from the profits he
made in selling his part of the family car repair business. The property on Hempstead Road will
be leased in April 2001 for a minimum of three years, with the option to extend the lease for
another three years after that.

Mark is working with the family lawyer to set up incorporation and to discuss lease issues before
the business is launched. He is working with a local graphic designer to develop a logo,
letterhead, and company brochures. Although Mark has been in the car repair business, he has
not been in the wash and detailing business, which is a very different service (quick turnaround
per car is incredibly important). For this reason he is working with an acquaintance to set up the
system that will ensure efficient service even during peak usage.

Rent on the location has been negotiated and will be $1,200 per month.  In addition, insurance for
the business will be approximately $200 per month and will be paid by direct debit on a monthly
basis. Expensed equipment includes three high-power water pumps, two industrial vacuum
cleaners, two computer terminals, and one cash register. All of the equipment will be depreciated
over three years.

The location was previously used as a quick stop automobile service shop, so it is set up to move
vehicles quickly through the premises, but does not have all the necessary systems in place to
host a car wash and detail facility. The services of a contracting company will be sought to
convert the use of the facility and to improve the customer waiting room facilities.

Start-up
   
Requirements  
   
Start-up Expenses  
Legal $500
Stationery etc. $400
Brochures $450
Consultants $0
Insurance $200
Rent $1,200
Research and Development $300
Expensed Equipment $4,100
Signs $700
Building Materials $1,200
Building Labor $1,000
Total Start-up Expenses $10,050
   
Start-up Assets Needed  
Cash Balance on Starting Date $8,700
Start-up Inventory $250
Other Current Assets $1,000
Total Current Assets $9,950
   
Long-term Assets $10,000
Total Assets $19,950
Total Requirements $30,000
   
Funding  
   
Investment  
Investor 1 $30,000
Investor 2 $0
Other $0
Total Investment $30,000
   
Current Liabilities  
Accounts Payable $0
Current Borrowing $0
Other Current Liabilities $0
Current Liabilities $0
   
Long-term Liabilities $0
Total Liabilities $0
   
Loss at Start-up ($10,050)
Total Capital $19,950
Total Capital and Liabilities $19,950

Start-up

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3. Services

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3.0 Services [back to top]

Soapy Rides will provide three services to its customers:

 Car washing (exterior)


 Car cleaning (interior)
 Car detailing.

4. Market Analysis Summary

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4.0 Market Analysis Summary [back to top]

The car wash will be based in East Meadow, New York. This area has a number of
benefits in terms of the market that it will provide for the business. Over 40% of
households in the immediate neighborhood earn over $70,000 annually. Many people in
the neighborhood own and/or lease new cars and place great value on their cars and how
they look. There are a large number of car dealerships in the area--five within three miles
of the proposed location for Soapy Rides.

4.1 Market Segmentation [back to top]

Soapy Rides segments its customers by type of car ownership. We believe that the type of car
that a person owns says volumes about their driving, and, therefore their car washing and
detailing requirements.

1. New car owners: Owners of newer cars are most likely to use a hand car washing
service. These owners take great pride in their cars and will bring them often to the wash
and detail service. The goal with these customers is to promote regular use of the wash
and detail service. The aim is to inform these customers that Soapy Rides will keep their
car looking as good as it did the day they drove it off the lot.
2. Older luxury car owners: These people have either owned their high-end luxury cars for
several years or are unable to afford the expense of a new luxury car but want the feel of
relaxed driving. Both of these groups want to keep their cars in the best shape possible.
Those who have bought second-hand cars will often spend many hours in their cars and
will place high importance on keeping their cars looking good. These owners will bring
their cars in for regular washes and occasional details.
3. Sports car owners: These people are often younger or middle-aged men and will
regard the look of their car as important. They will also pride themselves on the look of
their car and will have their car hand washed (at least) weekly. These drivers will have
an occasional detail, but will keep their cars so clean the detail will not be necessary very
often.
4. Lifetime owners: Many of these people have owned their cars for more than five or six
years, and are more likely to be women. They are attached to their cars as friends and
though it may be more sensible for them to purchase a new car, they will bring their car in
for a wash occassionally, just when the car is dirty. They like their cars to look
presentable, and want to keep it in good shape but are not tied up in the look of their car.
For this reason, they will not have a detail carried out on their car unless they are selling
it.
5. Dealerships: There are five new and used car dealerships within three miles of the
proposed location of Soapy Rides. These dealerships often use outside car wash
services to detail their vehicles before they are put up for sale. In addition, there are
fifteen other car dealerships within a seven mile radius of Soapy Rides.
6. Local businesses: Some local businesses have fleets of cars and small vans that must
be kept clean to maintain their company image. These businesses will be looking for a
cost effective, efficient car washing service to perform this service, and will prefer to use
a car wash service during the week rather than during weekends, like the general public.

Market Analysis (Pie)

Click to Enlarge

Market Analysis
Potential
Growth 2001 2002 2003 2004 2005 CAGR
Customers
New Car
10% 7,200 7,920 8,712 9,583 10,541 10.00%
Owners
Older
Luxury Car 15% 12,500 14,375 16,531 19,011 21,863 15.00%
Owners
Sports Car
15% 6,500 7,475 8,596 9,885 11,368 15.00%
Owners
Lifetime
10% 17,000 18,700 20,570 22,627 24,890 10.00%
Owners
New and
Used Car 7% 9 10 11 12 13 9.63%
Dealerships
Total 12.28% 43,209 48,480 54,420 61,118 68,675 12.28%
4.2 Target Market Segment Strategy [back to top]

The strategy behind Soapy Rides target segmentation is to attract customers who will be repeat
users and will frequent the business in the typically quiet times for a car wash business. It will not
be difficult to attract customers during the summer months and on the weekends, the weekdays
however, especially in the winter, people will not think about having their cars washed.  For this
reason, Soapy Rides will target people who will tend not to be restricted to these busy times.

 Business owners (new car owners) tend to be very busy people, but are often able to
make their own hours.
 Retired people (older luxury car owners) are not restricted by typical work schedules so
will be able to frequent the car wash during the week.
 Dealerships will need cars detailed and washed regardless of the time of the day and
week. This will supply a constant flow of traffic.
 Businesses will need their fleet cars washed during the week during regular
business hours.

4.3 Service Business Analysis [back to top]

The hand car washing business in East Meadow consists of many small


competitors. Everything from local children raising money for their youth group on a
Saturday by cleaning cars, to the automatic car wash machines, are competition for Soapy
Rides. However, these two alternatives aim to meet the needs of the price-conscious
individuals who are choosing the service simply so they do not have to clean the car
themselves. Soapy Rides on the other hand, targets the quality-conscious individuals who
value their car enough to spend $10-$15 per week to make it look good.

4.3.1 Competition and Buying Patterns [back to top]

There is one other hand car wash shop in East Meadow. It is quite new and is trying to compete
with automatic car washes by offering low prices. However, it is not targeting the customers who
seek quality cleaning.

The customers who Soapy Rides is targeting have their cars washed based on the quality of the
job. They do not mind spending a little more each week to have their car washed and waxed  in
order to keep the paint work in excellent shape. The businesses that Soapy Rides targets will be
more cost conscious, so prices will be approximately 30% less for these customers to promote
volume usage.

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5. Strategy and Implementation Summary

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5.0 Strategy and Implementation Summary [back to top]


The key differentiator for Soapy Rides Car Wash is Mark Deshpande and his business
and personal connections within the East Meadow neighborhood. For this reason, the
sales and marketing focus will be on a one-to-one basis, with the emphasis on gaining
loyal and repeat customers as "friends" of the business. Soapy Rides, therefore, will
depend on word-of-mouth advertising for the immediate community.

5.1 Competitive Edge [back to top]

Soapy Rides' competitive edge will be Mark Deshpande and the quality of the family
name in the East Meadow area. As mentioned, the family has been in the car business for
over 30 years, and has an excellent reputation and a myriad of both business and personal
contacts. In addition, Mark has put a great deal of emphasis on creating a system that is
both fast and efficient, which will keep costs, in terms of time spent per car, to a
minimum.

5.2 Sales Strategy [back to top]

Sales strategy is on a one-to-one basis. All customers will feel they are a valued friend of
Soapy Rides, and that all employees care about the care and upkeep of each vehicle. We
must be aware that there are low switching costs in the car washing industry, so we have
to work hard to develop and keep repeat customers.

5.2.1 Sales Forecast [back to top]

The following chart forecasts sales based upon the Market Segmentation Strategy. Sales are
seasonal in this industry, tending to be higher in the warmer summer months, and to drop off in
the winter. However, we will aim to flatten sales across the sales cycle by targeting segments that
will want to keep their cars clean and looking good year round.

Sales Monthly

Click to Enlarge

Sales Forecast
Unit Sales FY 2002 FY 2003 FY 2004
Full Wash 1,760 2,288 2,974
Exterior Wash 2,050 2,665 3,465
Interior Clean 770 1,001 1,301
End User Detail 129 193 290
Business Fleet Washes 615 923 1,384
Car Dealership Details 494 642 963
Total Unit Sales 5,818 7,712 10,376
       
Unit Prices FY 2002 FY 2003 FY 2004
Full Wash $15.00 $15.00 $15.00
Exterior Wash $9.00 $10.00 $12.00
Interior Clean $8.00 $9.00 $9.00
End User Detail $140.00 $145.00 $150.00
Business Fleet Washes $10.00 $10.00 $10.00
Car Dealership Details $70.00 $75.00 $80.00
       
Sales      
Full Wash $26,400 $34,320 $44,616
Exterior Wash $18,450 $26,650 $41,574
Interior Clean $6,160 $9,009 $11,712
End User Detail $18,060 $27,985 $43,425
Business Fleet Washes $6,150 $9,225 $13,838
Car Dealership Details $34,580 $48,150 $77,040
Total Sales $109,800 $155,339 $232,204
       
Direct Unit Costs FY 2002 FY 2003 FY 2004
Full Wash $0.70 $0.80 $0.90
Exterior Wash $0.40 $0.45 $0.50
Interior Clean $0.30 $0.35 $0.40
End User Detail $3.00 $3.50 $4.00
Business Fleet Washes $0.70 $0.75 $0.80
Car Dealership Details $3.00 $3.50 $4.00
       
Direct Cost of Sales FY 2002 FY 2003 FY 2004
Full Wash $1,232 $1,830 $2,677
Exterior Wash $820 $1,199 $1,732
Interior Clean $231 $350 $521
End User Detail $387 $676 $1,158
Business Fleet Washes $431 $692 $1,107
Car Dealership Details $1,482 $2,247 $3,852
Subtotal Direct Cost of
$4,583 $6,994 $11,047
Sales
5.3 Milestones [back to top]
The following table outlines the important milestones in the planning and implementation of
Soapy Rides.

Milestones
Milestone Start Date End Date Budget Manager Department
Complete
2/1/2001 5/1/2001 $0 ABC Department
Business Plan
Sign Rental
3/20/2001 3/20/2001 $475 Mark Owner
Contract
Convert
4/1/2001 4/30/2001 $0 Contractors Contractors
Premises
Hire Car Wash
4/20/2001 4/20/2001 $200 Mark Owner
Staff
Hire Admin
4/20/2001 4/20/2001 $200 Mark Owner
Staff
Open for
5/1/2001 5/1/2001 $0 Staff Staff
Business
Distribute
4/28/2001 5/5/2001 $75 Friends Friends
Flyers
Press Release 4/29/2001 4/29/2001 $25 Mark Owner
Follow-up on
4/30/2001 4/30/2001 $0 Mark Owner
Press Release
Totals     $975    

6. Management Summary

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6.0 Management Summary [back to top]

Mark Deshpande is the sole owner and manager of Soapy Rides. In addition, he will be helped
(on an unofficial basis) by his father, Barry Deshpande. Barry has over 30 years experience as an
entrepreneur, both in the car business and in property development and management.

Mark will also have the assistance of John Shine, the family accountant, in creating a
long-term strategic vision for the company. John is a family friend and has worked with
the Deshpande family for 23 years. He has worked with hundreds of small- and medium-
sized businesses during his career.

6.1 Personnel Plan [back to top]

Since car washing is a seasonal business, with business increasing in the warm summer months,
and being busier on the weekends than during the week, Soapy Rides will rely on both temporary
and part-time help. The company will hire one full-time car wash/detail specialist and one full-time
car wash specialist when it opens for business. Although it will rely on temporary and part-time
help, quality will not be compromised, since all washers and detailers will receive thorough
training. The company will also hire an administrative assistant who will assist Mark with
paperwork and act as a receptionist.
Personnel Plan
  FY 2002 FY 2003 FY 2004
Owner $18,000 $30,000 $40,000
Car Washers $30,240 $43,312 $51,174
Admin/Sales $13,440 $15,000 $22,000
Total People 0 0 0
Total Payroll $61,680 $88,312 $113,174
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7. Financial Plan

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7.0 Financial Plan [back to top]

The following plan outlines the financial development of Soapy Rides. The business will
be initially financed by a $30,000 investment by Mark Deshpande and will finance
growth through cash flow. This will mean that the company will grow more slowly than
it could, but it will ensure that Mark retains control over the direction of the company. In
year three, it is hoped that the company will be able to open a second location. It is
envisioned that an outside loan or equity funding will be sought at that time.

7.1 Important Assumptions [back to top]

The financial projections for Soapy Rides are based on the following assumptions. These
assumptions are thought to be quite conservative, as are the financial forecasts.

General Assumptions
  FY 2002 FY 2003 FY 2004
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest
10.00% 10.00% 10.00%
Rate
Tax Rate 25.42% 25.00% 25.42%
Sales on Credit % 15.00% 15.00% 15.00%
Other 0 0 0
7.2 Break-even Analysis [back to top]

Fixed monthly costs for Soapy Rides are estimated to be approximately $7,500, and break even
monthly units are 203 units per month.
Break-even Analysis

Click to Enlarge

Break-even Analysis:
Monthly Units Break-even 203
Monthly Revenue Break-even $9,122
   
Assumptions:  
Average Per-Unit Revenue $45.00
Average Per-Unit Variable Cost $8.00
Estimated Monthly Fixed Cost $7,500
7.3 Projected Profit and Loss [back to top]

The following Profit and Loss table illustrates income and expenses monthly for the first year, and
annually for the next two years.

Pro Forma Profit and Loss


  FY 2002 FY 2003 FY 2004
Sales $109,800 $155,339 $232,204
Direct Cost of Sales $4,583 $6,994 $11,047
Other $0 $0 $0
  ------------ ------------ ------------
Total Cost of Sales $4,583 $6,994 $11,047
Gross Margin $105,218 $148,345 $221,157
Gross Margin % 95.83% 95.50% 95.24%
Expenses:      
Payroll $61,680 $88,312 $113,174
Sales and Marketing
$2,600 $1,550 $1,700
and Other Expenses
Depreciation $2,070 $2,070 $2,070
Leased Equipment $0 $0 $0
Utilities $3,325 $3,500 $3,750
Insurance $1,800 $1,800 $1,800
Rent $4,800 $5,500 $6,000
Payroll Taxes $15,420 $22,078 $28,294
Other $0 $0 $0
  ------------ ------------ ------------
Total Operating
$91,695 $124,810 $156,788
Expenses
Profit Before Interest
$13,523 $23,535 $64,370
and Taxes
Interest Expense $0 $0 $0
Taxes Incurred $3,204 $5,884 $16,361
Net Profit $10,318 $17,651 $48,009
Net Profit/Sales 9.40% 11.36% 20.68%
7.4 Projected Cash Flow [back to top]

The following Cash Flow table illustrates that if Soapy Rides meets projected sales, it will have
positive cash flow after month three of operation.

Cash

Click to Enlarge

Pro Forma Cash Flow


  FY 2002 FY 2003 FY 2004
       
Cash Received      
Cash from Operations:      
Cash Sales $93,330 $132,038 $197,374
Cash from Receivables $13,918 $22,242 $33,044
Subtotal Cash from
$107,248 $154,280 $230,417
Operations
       
Additional Cash
     
Received
Sales Tax, VAT,
$0 $0 $0
HST/GST Received
New Current Borrowing $0 $0 $0
New Other Liabilities
$0 $0 $0
(interest-free)
New Long-term
$0 $0 $0
Liabilities
Sales of Other Current
$0 $0 $0
Assets
Sales of Long-term
$0 $0 $0
Assets
New Investment
$0 $0 $0
Received
Subtotal Cash
$107,248 $154,280 $230,417
Received
       
Expenditures FY 2002 FY 2003 FY 2004
Expenditures from
     
Operations:
Cash Spending $2,072 $2,548 $4,082
Payment of Accounts
$93,389 $132,822 $176,854
Payable
Subtotal Spent on
$95,461 $135,370 $180,936
Operations
       
Additional Cash Spent      
Sales Tax, VAT,
$0 $0 $0
HST/GST Paid Out
Principal Repayment of
$0 $0 $0
Current Borrowing
Other Liabilities
$0 $0 $0
Principal Repayment
Long-term Liabilities
$0 $0 $0
Principal Repayment
Purchase Other
$0 $0 $0
Current Assets
Purchase Long-term
$0 $0 $0
Assets
Dividends $0 $0 $0
Subtotal Cash Spent $95,461 $135,370 $180,936
       
Net Cash Flow $11,787 $18,910 $49,481
Cash Balance $20,487 $39,397 $88,878
7.5 Projected Balance Sheet [back to top]

Soapy Rides' balance sheet illustrates a healthy financial position for this new company. The
monthly estimates are included in the appendices.

Pro Forma Balance Sheet


       
Assets      
Current Assets FY 2002 FY 2003 FY 2004
Cash $20,487 $39,397 $88,878
Accounts Receivable $2,552 $3,611 $5,398
Inventory $483 $737 $1,164
Other Current Assets $1,000 $1,000 $1,000
Total Current Assets $24,522 $44,745 $96,440
Long-term Assets      
Long-term Assets $10,000 $10,000 $10,000
Accumulated
$2,070 $4,140 $6,210
Depreciation
Total Long-term Assets $7,930 $5,860 $3,790
Total Assets $32,452 $50,605 $100,230
       
Liabilities and Capital      
Current Liabilities FY 2002 FY 2003 FY 2004
Accounts Payable $2,184 $2,686 $4,302
Current Borrowing $0 $0 $0
Other Current
$0 $0 $0
Liabilities
Subtotal Current
$2,184 $2,686 $4,302
Liabilities
       
Long-term Liabilities $0 $0 $0
Total Liabilities $2,184 $2,686 $4,302
       
Paid-in Capital $30,000 $30,000 $30,000
Retained Earnings ($10,050) $268 $17,919
Earnings $10,318 $17,651 $48,009
Total Capital $30,268 $47,919 $95,929
Total Liabilities and
$32,452 $50,605 $100,230
Capital
Net Worth $30,268 $47,919 $95,929
7.6 Business Ratios [back to top]
The following table contains important ratios for the car wash industry, as determined by the
Standard Industry Classification (SIC) code, 7542.
Ratio Analysis
  FY 2002 FY 2003 FY 2004 Industry Profile
Sales Growth 0.00% 41.47% 49.48% 3.00%
         
Percent of Total
       
Assets
Accounts
7.86% 7.14% 5.39% 8.70%
Receivable
Inventory 1.49% 1.46% 1.16% 9.50%
Other Current
3.08% 1.98% 1.00% 26.40%
Assets
Total Current
75.56% 88.42% 96.22% 44.60%
Assets
Long-term Assets 24.44% 11.58% 3.78% 55.40%
Total Assets 100.00% 100.00% 100.00% 100.00%
         
Current Liabilities 6.73% 5.31% 4.29% 29.30%
Long-term
0.00% 0.00% 0.00% 27.80%
Liabilities
Total Liabilities 6.73% 5.31% 4.29% 57.10%
Net Worth 93.27% 94.69% 95.71% 42.90%
         
Percent of Sales        
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.83% 95.50% 95.24% 0.00%
Selling, General &
Administrative 86.59% 84.13% 74.45% 68.20%
Expenses
Advertising
0.91% 0.74% 0.56% 1.50%
Expenses
Profit Before
12.32% 15.15% 27.72% 2.70%
Interest and Taxes
         
Main Ratios        
Current 11.23 16.66 22.42 1.53
Quick 11.01 16.39 22.15 0.88
Total Debt to Total
6.73% 5.31% 4.29% 57.10%
Assets
Pre-tax Return on
44.68% 49.11% 67.10% 3.40%
Net Worth
Pre-tax Return on
41.67% 46.51% 64.22% 8.00%
Assets
         
Additional Ratios FY 2002 FY 2003 FY 2004  
Net Profit Margin 9.40% 11.36% 20.68% n.a
Return on Equity 34.09% 36.83% 50.05% n.a
         
Activity Ratios        
Accounts
Receivable 6.45 6.45 6.45 n.a
Turnover
Collection Days 43 48 47 n.a
Inventory
12.00 11.46 11.62 n.a
Turnover
Accounts Payable 43.76 49.64 41.49 n.a
Turnover
Payment Days 5 7 7 n.a
Total Asset
3.38 3.07 2.32 n.a
Turnover
         
Debt Ratios        
Debt to Net Worth 0.07 0.06 0.04 n.a
Current Liab. to
1.00 1.00 1.00 n.a
Liab.
         
Liquidity Ratios        
Net Working
$22,338 $42,059 $92,139 n.a
Capital
Interest Coverage 0.00 0.00 0.00 n.a
         
Additional Ratios        
Assets to Sales 0.30 0.33 0.43 n.a
Current Debt/Total
7% 5% 4% n.a
Assets
Acid Test 9.84 15.04 20.89 n.a
Sales/Net Worth 3.63 3.24 2.42 n.a
Dividend Payout 0.00 0.00 0.00 n.a
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