Do you want to start own golf course business?
Are you planning to build a golf course? Although starting a golf course requires a high initial capital but its monthly and maintenance cost are extremely low as compared to other businesses of similar magnitudes. That’s why this business yields profit within a very short time of its launch.
If you have successfully surveyed the area where you are going to start your golf course and accurately calculated the demand or need for a gold course then you can assume your venture to become extremely profitable. In such case, there is a very low amount of risk associated with it provided that you plan it successfully.
So before you move towards this venture, you will have to prepare a comprehensive business plan which will establish the basis of your company’s future operations and decisions. It will help you determine everything, like identifying the finances and personnel needed for the startup, identifying the target customers, allocation of proper resources for its operation and maintenance.
So, if you are wondering how to write an effective business plan then here we are providing you the business plan for a convenience store business startup named ‘Eden Golf’.
Executive Summary
2.1 The Business
Eden Golf will be a fully licensed and insured golf course, located at a 30-minute drive from Downtown Manhattan in the New York City. An 86 acres, 18-hole facility which was previously used as Star Golf Course for ten years has been acquired to be turned into the new course. The Star Golf Course has closed seven years ago due to financial reasons, that’s why it has gone out of shape and requires extensive landscape work. The work has already been started and will be completed within the next three months before the course launches in April. In addition, the following equipment needs to be purchased:
- Driving Range Equipment
- Food Equipment for Snacks Bar
- Landscape Maintenance Equipment
Thirty-five golf carts will be leased to make sure that there is sufficient transportation for the guests and members using the course.
2.2 Management
Eden Golf will be owned and operated by Mark Wilton who is an American professional golfer and one of the most successful golfers of all time.
2.3 Customers
Our customers or members will either be the local residents living near us or the professional players who will visit us from everywhere. Mark will guide and train the members as well as play with them occasionally. Our membership prices are 10% less as compared to that of our competitors. The prices are deliberately set to be lower so as to increase the popularity of this sport in public which is the primary goal of Mark. A snacks bar, a driving track, and a pro shop will also be provided along with the facility.
2.4 Target of the Company
The main target of Mark is to bring back the popularity of this sport through his venture while also generating substantial revenue. He also aims to balance the initial cost of the startup with earned profits by the end of five years.
Company Summary
3.1 Company Owner
Eden Golf will be owned by Mark Wilton. Mark is an American professional golfer and is one of the most successful golfers the world has ever seen. He was one the highest-paid golfers in the world for several years. Following an outstanding junior, college, and amateur career, Mark was 22 years old when he started to play professionally. Within the course of next 20 years, he had already won four PGA tour events pocketing millions of dollars at the time. He reached the number third position in the world golf rankings in less than a year after turning pro. Mark remained the most famous player in golf for the last 30 years until his retirement last year.
3.2 Why the Business is being started
Mark has retired from the professional golf industry, a year before. Golf is his ultimate passion and he cannot imagine his life without it. That’s why he had always thought about starting his golf course throughout his professional career. This business is undoubtedly the best engagement of his precious time where he will remain in contact with various national and international golf players from around the world. Along with having a great time for himself, he will also serve the golf industry as well. He aims to bring back the popularity of this sport through his venture.
3.3 How the Business will be started
The golf course industry is not for everyone to step in. Staring a golf course requires an immense amount of initial capital and a professional-level knowledge of this sport. Mark has both of them. The business will be started by the huge amount of savings, earned from hundreds of competitions and golf matches throughout his career. The financial experts have forecasted following costs for expenses, assets, investment, and bank loans for the business plan.
The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, is given below:
| Start-up Expenses | |
| Legal | $75,500 |
| Consultants | $0 |
| Insurance | $62,750 |
| Rent | $22,500 |
| Research and Development | $42,750 |
| Expensed Equipment | $42,750 |
| Signs | $1,250 |
| TOTAL START-UP EXPENSES | $247,500 |
| Start-up Assets | $0 |
| Cash Required | $322,500 |
| Start-up Inventory | $52,625 |
| Other Current Assets | $222,500 |
| Long-term Assets | $125,000 |
| TOTAL ASSETS | $121,875 |
| Total Requirements | $245,000 |
| START-UP FUNDING | $0 |
| START-UP FUNDING | $273,125 |
| Start-up Expenses to Fund | $121,875 |
| Start-up Assets to Fund | $195,000 |
| TOTAL FUNDING REQUIRED | $0 |
| Assets | $203,125 |
| Non-cash Assets from Start-up | $118,750 |
| Cash Requirements from Start-up | $0 |
| Additional Cash Raised | $118,750 |
| Cash Balance on Starting Date | $121,875 |
| TOTAL ASSETS | $0 |
| Liabilities and Capital | $0 |
| Liabilities | $0 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $0 |
| Capital | $0 |
| Planned Investment | $0 |
| Investor 1 | $312,500 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $695,000 |
| Loss at Start-up (Start-up Expenses) | $313,125 |
| TOTAL CAPITAL | $221,875 |
| TOTAL CAPITAL AND LIABILITIES | $221,875 |
| Total Funding | $265,000 |
Services for customers
Golf is one of the popular sports in the United States where hundreds of businessmen can be seen investing in it or thinking about how to buy a golf course. Buying an existing golf course or starting a new one is not the actual problem since the success of this business entirely depends on the services provided to the members. That’s where investors lack. Mark, having a lifetime of experience in this industry knows exactly which services to provide to the members. Eden Golf will provide following services to its members:
- An 18-hole golf course
- A Pro Shop
- A Snack bar
- A Driving range
Marketing Analysis of golf courses business
The most important component of golf course business plan is its accurate marketing analysis because it is only after this stage that a good golf course marketing strategy could have been developed. There are four main steps to carry out an accurate marketing analysis which are to identify the current market trends, identify your target audience and potential customers, set out the business targets to achieve, and finally set the prices of your products and services. Marketing analysis a must be incorporated before you even think about how to run a golf course.
5.1 Marketing Segmentation
Our target market is the community living in the downtown Manhattan at a 30 minutes’ drive from our course. The community consists of all types of people from varying backgrounds. As per the financial position, nearly half of the community has a monthly income ranging from $40k to $50k while nearly 10% people have incomes even around $100,000. So nearly all of the people are well established and can easily afford our membership fees. A successful and efficient marketing strategy can only be developed after we completely know our potential customers. Our experts have identified the following type of target audience which can become the future members of our golf course.
The detailed marketing segmentation of our target audience is as follows:
5.1.1 Regular Players:
The first group of our customers will be the community living in the vicinity of our golf in downtown Manhattan. These residents are financially stable and can become the members of our golf course. The community comprises nearly 43% girls and women. Out of the 57% males, 23% are infants and teens, while 13% comprise of old age men. The remaining 21% middle-aged men can become our potential members. A small survey done by Eden Golf’s team in the neighborhood showed that 1 out of every 4 middle-aged men has an interest in playing golf. We hope to convert those persons into our members. They are regular golfers and just play for entertainment purposes. They will also use our pro shop for buying golf-related products and are also hoped to dine at the snacks bar.
5.1.2 Professional Players:
The second category includes the professional players which will become the major user of our facility. Many professional players based throughout the New York City are expected to use our course. We will provide separate professional-level facilities to these players. Due to the popularity and connections of Mark, we expect even the national and international level players to visit our course.
5.1.3 Guests and Audience:
The third category includes the audience and guests who will come to watch the games arranged at our facility. They will just have to pay a small entrance fee but their large numbers will generate the major chunk of revenue.
The detailed market analysis of our potential customers is given in the following table:
| Market Analysis | |||||||||
| Potential Customers | Growth | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | CAGR | ||
| Regular Players | 34% | 11,433 | 13,344 | 16,553 | 18,745 | 20,545 | 10.00% | ||
| Professional Players | 48% | 22,334 | 32,344 | 43,665 | 52,544 | 66,432 | 13.43% | ||
| Guests and Audience | 18% | 8,322 | 9,455 | 10,655 | 12,867 | 14,433 | 15.32% | ||
| Total | 100% | 42,089 | 55,143 | 70,873 | 84,156 | 101,410 | 9.54% | ||
5.2 Business Target
Mark’s to increase the interest of the people in this sport while also generating sufficient revenue from the course. The business targets are to balance the cost of a startup within next 5 years of launch and to become one of the best golf courses in the New York City.
5.3 Product Pricing
Eden Golf will basically offer three types of packages to its members to choose from:
- Monthly membership for $1000 per month
- Semi-annual membership for $5000 per six months
- Yearly membership for $8000 per year
Strategy
After identifying the market trends, the market demand, and the potential customers, the next step is to develop an ingenious sales strategy to attract those customers toward us. Like marketing analysis, sales strategy is also an important component of starting a golf course. Many people have debated on how golf course marketing strategies can affect the sales and revenue generated from this business along with increasing the popularity of this sport. Many studies and researches in this industry have also concluded that there are a need for bringing new and innovative gold course marketing ideas to bring back the popularity of this sport and the associated revenue. It shows how important it is to develop an effective strategic business plan before entering this venture. Mark carried out an extensive research about various marketing and advertising strategies and current golf course business trends before developing an effective sales strategy.
6.1 Competitive Analysis:
Golf is one of the most popular sports in the world, especially in the United States. According to a study, “Golf Around The World”, there were more than 34,000 golf courses in the world as of 2015, 45% out of which are located in the United States. These 45% amounted to a total around 15,400 which has fallen from its peak value of 16,052 due to gradual, and steady, market correction. The number of these golf courses declines due to a variety of reasons, one of which was the limited attention paid to this sport and the golf courses, nationally and internationally. Similarly, the number of people who played golf also reduced but still amounted to about 26 million in the United States as of 2017. The stats show that the numbers of golf courses are far below as compared to the number of people who play golf that’s why this market has a lot of potential and competition as well.
The biggest competitive advantage for Eden Golf over its competitors is that it is a venture of a world-renowned golf player, who is being praised in every country of the world. It is basically the key differentiating factor between us and our competitors. Mark will guide and train the members as well as play with them occasionally. Our second competitive edge will a shuttle service which will run two times a day throughout the neighborhood to facilitate the movement of members, in case they want to avail it. Finally, our pricing strategy will also help to drive sales since our prices are 10% less as compared to that of our competitors. The prices are deliberately set to be lower so as to increase the popularity of this sport in public which is the primary goal of Mark.
6.2 Sales Strategy
After carrying out a detailed analysis of every aspect, we have come up with the following brilliant ideas to advertise ourselves and drive sales. This sales strategy has been specifically built to attract as many customers as possible toward us.
- Mark will visit various golf conferences and seminars where he will introduce his new venture. He will also distribute his golf course business cards among the participants
- A large-scale social media campaign for our advertisement will be carried out
- Discounts on the membership for the first three months of the launch
- A 20% discount will be given on the snacks bar and pro shop to the annual members of our course
- Arranging the national level golf competitions on the yearly basis
6.3 Sales Forecast
Considering our low prices, free shuttle service, and the chance to meet an all-time golf expert on a regular basis, we hope to attract a lot of people towards us. Due to the quality of our golf course and our unparalleled customer service, our sales pattern is expected to increase with years. The sales pattern will vary throughout the year, with driving more sales in summer as compared to the winters. The sales from the eatables and drinks from the snacks bar will vary similarly but, on the contrary, sales from pro shop will not follow a regular pattern. In December many people buy golf-related products as gifts for their golfers’ friends and family members so that’s when our pro shop will come in handy.
By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.
The detailed information about sales forecast, total unit sales, total sales is given in the following table:
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Monthly Membership | 187,330 | 260,320 | 258,240 |
| Semi-annual Membership | 802,370 | 815,430 | 823,540 |
| Yearly Membership | 539,320 | 770230 | 1,002,310 |
| Driving range | 265,450 | 322,390 | 393,320 |
| Pro Shop products | 1,435,320 | 1,250,430 | 1,762,450 |
| Snacks | 134,240 | 394,340 | 842,230 |
| TOTAL UNIT SALES | 3,364,030 | 3,813,140 | 5,082,090 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Monthly Membership | $140.00 | $150.00 | $160.00 |
| Semi-annual Membership | $600.00 | $800.00 | $1,000.00 |
| Yearly Membership | $700.00 | $800.00 | $900.00 |
| Driving range | $650.00 | $750.00 | $850.00 |
| Pro Shop products | $140.00 | $120.00 | $100.00 |
| Snacks | $1,150.00 | $1,300.00 | $1,450.00 |
| Sales | |||
| Monthly Membership | $214,800 | $274,000 | $333,200 |
| Semi-annual Membership | $120,050 | $194,500 | $268,500 |
| Yearly Membership | $50,110 | $71,600 | $93,000 |
| Driving range | $139,350 | $194,600 | $249,850 |
| Pro Shop products | $62,350 | $72,300 | $82,250 |
| Snacks | $229,500 | $365,500 | $501,500 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Monthly Membership | $0.70 | $0.80 | $0.90 |
| Semi-annual Membership | $0.40 | $0.45 | $0.50 |
| Yearly Membership | $0.30 | $0.35 | $0.40 |
| Driving range | $3.00 | $3.50 | $4.00 |
| Pro Shop products | $0.70 | $0.75 | $0.80 |
| Snacks | $3.00 | $3.50 | $4.00 |
| Snacks | |||
| Monthly Membership | $98,300 | $183,000 | $267,700 |
| Semi-annual Membership | $66,600 | $119,900 | $173,200 |
| Yearly Membership | $17,900 | $35,000 | $52,100 |
| Driving range | $19,400 | $67,600 | $115,800 |
| Pro Shop products | $27,700 | $69,200 | $110,700 |
| Snacks | $64,200 | $224,700 | $385,200 |
| Subtotal Direct Cost of Sales | $294,100 | $699,400 | $1,104,700 |
Personnel plan
The key to the success of a business is its careful planning in the initial stages. Just like the planning of other components, you must also prepare a Personnel plan before you think about business golf course. It is an extremely important stage because the success of any business significantly depends upon its employees. After getting counsel from other persons associated with this industry, Mark developed the following personnel plan for Eden Golf.
7.1 Company Staff
Mark will hire following staff for Eden Golf:
- 1 Pro Shop Manager to manage and operate it
- 2 Snack Shop Manager
- 2 Administrators / Accountants to maintain financial records
- 4 Sales Executives responsible for marketing and discovering new ventures
- 10 Employees for operating and maintaining the Golf Cart
- 1 Shuttle Driver to pick and drop members
- 4 Cleaners for cleaning the facility
- 1 Front Desk Officer to act as a receptionist
- 3 Security Guards
To ensure the best quality service, all employees will be trained for a month before starting their jobs.
7.2 Average Salary of Employees
The following table shows the forecasted data about employees and their salaries for next three years.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Pro Shop Manager | $85,000 | $95,000 | $105,000 |
| Snack Shop Manager | $45,000 | $50,000 | $60,000 |
| Administrators / Accountants | $45,000 | $52,000 | $59,000 |
| Sales Executives | $85,000 | $92,000 | $109,000 |
| Employees | $410,000 | $440,000 | $480,000 |
| Shuttle Driver | $66,000 | $73,000 | $80,000 |
| Cleaners | $63,300 | $70,000 | $76,700 |
| Front Desk Officer | $20,000 | $23,300 | $30,000 |
| Security Guards | $40,000 | $45,000 | $52,000 |
| Total Salaries | $689,300 | $750,300 | $834,700 |
Financial Plan
Before starting this venture, Mark considered both the options of building a new golf course and buying an existing one. He hired financial experts to know how much does it cost to build a golf course and after proper analysis, it was evident that the cost of building a golf course is much higher as compared to buying an existing one. That’s why Mark bought the Star Golf Course to be turned into a new golf course.
The next step was to develop a detailed map about the financial projections covering all aspects of the company. The financial plan should craft a detailed map about the cost of startup, inventory, payroll, equipment, utilities and how these costs will be covered by the earned profits. The financial plan outlines the development of the company over the next three years and is specifically developed to achieve both the company’s short-term and long-term objectives.
8.1 Important Assumptions
The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 11.00% | 12.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 26.42% | 27.76% | 28.12% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
The following graph shows the company’s Brake-even Analysis.
The following table shows the company’s Brake-even Analysis.
| Brake-Even Analysis | |
| Monthly Units Break-even | 5530 |
| Monthly Revenue Break-even | $159,740 |
| Assumptions: | |
| Average Per-Unit Revenue | $260.87 |
| Average Per-Unit Variable Cost | $0.89 |
| Estimated Monthly Fixed Cost | $196,410 |
8.3 Projected Profit and Loss
The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $40,124 | $45,046 | $50,068 |
| Cash from Receivables | $7,023 | $8,610 | $9,297 |
| SUBTOTAL CASH FROM OPERATIONS | $47,143 | $53,651 | $59,359 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $47,143 | $53,651 | $55,359 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $21,647 | $24,204 | $26,951 |
| Bill Payments | $13,539 | $15,385 | $170,631 |
| SUBTOTAL SPENT ON OPERATIONS | $35,296 | $39,549 | $43,582 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $35,296 | $35,489 | $43,882 |
| Net Cash Flow | $11,551 | $13,167 | $15,683 |
| Cash Balance | $21,823 | $22,381 | $28,239 |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
The following table shows detailed information about profit and loss, and total cost of sales.
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $309,069 | $385,934 | $462,799 |
| Direct Cost of Sales | $15,100 | $19,153 | $23,206 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $15,100 | $19,153 | $23,206 |
| Gross Margin | $293,969 | $366,781 | $439,593 |
| Gross Margin % | 94.98% | 94.72% | 94.46% |
| Expenses | |||
| Payroll | $138,036 | $162,898 | $187,760 |
| Sales and Marketing and Other Expenses | $1,850 | $2,000 | $2,150 |
| Depreciation | $2,070 | $2,070 | $2,070 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4,000 | $4,250 | $4,500 |
| Insurance | $1,800 | $1,800 | $1,800 |
| Rent | $6,500 | $7,000 | $7,500 |
| Payroll Taxes | $34,510 | $40,726 | $46,942 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $188,766 | $220,744 | $252,722 |
| Profit Before Interest and Taxes | $105,205 | $146,040 | $186,875 |
| EBITDA | $107,275 | $148,110 | $188,945 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $26,838 | $37,315 | $47,792 |
| Net Profit | $78,367 | $108,725 | $139,083 |
| Net Profit/Sales | 30.00% | 39.32% | 48.64% |
8.4 Projected Cash Flow
The following column diagram shows the projected cash flow.
8.5 Projected Balance Sheet
The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.
The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $184,666 | $218,525 | $252,384 |
| Accounts Receivable | $12,613 | $14,493 | $16,373 |
| Inventory | $2,980 | $3,450 | $3,920 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $201,259 | $237,468 | $273,677 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $12,420 | $14,490 | $16,560 |
| TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
| TOTAL ASSETS | $198,839 | $232,978 | $267,117 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9,482 | $10,792 | $12,102 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9,482 | $10,792 | $12,102 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9,482 | $10,792 | $12,102 |
| Paid-in Capital | $30,000 | $30,000 | $30,000 |
| Retained Earnings | $48,651 | $72,636 | $96,621 |
| Earnings | $100,709 | $119,555 | $138,401 |
| TOTAL CAPITAL | $189,360 | $222,190 | $255,020 |
| TOTAL LIABILITIES AND CAPITAL | $198,839 | $232,978 | $267,117 |
| Net Worth | $182,060 | $226,240 | $270,420 |
8.6 Business Ratios
The following table shows data about business ratios, ratio analysis, total assets, net worth.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 4.35% | 30.82% | 63.29% | 4.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 5.61% | 4.71% | 3.81% | 9.70% |
| Inventory | 1.85% | 1.82% | 1.79% | 9.80% |
| Other Current Assets | 1.75% | 2.02% | 2.29% | 27.40% |
| Total Current Assets | 138.53% | 150.99% | 163.45% | 54.60% |
| Long-term Assets | -9.47% | -21.01% | -32.55% | 58.40% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.68% | 3.04% | 2.76% | 27.30% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 25.80% |
| Total Liabilities | 4.68% | 3.04% | 2.76% | 54.10% |
| NET WORTH | 99.32% | 101.04% | 102.76% | 44.90% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.18% | 93.85% | 93.52% | 0.00% |
| Selling, General & Administrative Expenses | 74.29% | 71.83% | 69.37% | 65.20% |
| Advertising Expenses | 2.06% | 1.11% | 0.28% | 1.40% |
| Profit Before Interest and Taxes | 26.47% | 29.30% | 32.13% | 2.86% |
| Main Ratios | ||||
| Current | 25.86 | 29.39 | 32.92 | 1.63 |
| Quick | 25.4 | 28.88 | 32.36 | 0.84 |
| Total Debt to Total Assets | 2.68% | 1.04% | 0.76% | 67.10% |
| Pre-tax Return on Net Worth | 66.83% | 71.26% | 75.69% | 4.40% |
| Pre-tax Return on Assets | 64.88% | 69.75% | 74.62% | 9.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19.20% | 21.16% | 23.12% | N.A. |
| Return on Equity | 47.79% | 50.53% | 53.27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4.56 | 4.56 | 4.56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19.7 | 22.55 | 25.4 | N.A. |
| Accounts Payable Turnover | 14.17 | 14.67 | 15.17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1.84 | 1.55 | 1.26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0.02 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120,943 | $140,664 | $160,385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.45 | 0.48 | 0.51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23.66 | 27.01 | 30.36 | N.A. |
| Sales/Net Worth | 1.68 | 1.29 | 0.9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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