CRA Retail Financial Analysis & Metrics Flashcards
6 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRA Retail Financial Analysis & Metrics flashcards as text
How is gross margin percentage calculated?
Answer: (Revenue − COGS) / Revenue × 100
Gross margin percentage is gross profit (revenue minus cost of goods sold) divided by revenue, expressed as a percentage.
What does 'sell-through rate' measure in retail inventory analysis?
Answer: Percentage of received inventory sold within a period
Sell-through rate measures the proportion of inventory received that was sold during a specific time period, indicating product demand.
Which financial metric shows how many times a retailer sells and replaces its inventory in a year?
Answer: Inventory turnover ratio
Inventory turnover ratio equals COGS divided by average inventory and indicates how efficiently a retailer manages its stock.
A store's same-store sales (SSS) increased 5% year-over-year. What does this indicate?
Answer: Existing store locations grew revenue by 5%
Same-store sales (also called comparable-store sales) measures revenue growth at locations open for at least one year, excluding new stores.
What is 'shrink' in retail financial reporting?
Answer: Inventory loss due to theft, damage, or administrative error
Shrink refers to the difference between recorded inventory and actual physical inventory, caused by theft, damage, or errors.
Which metric evaluates profitability per unit of selling space?
Answer: Sales per square foot
Sales per square foot measures revenue generated per unit of retail floor space, helping assess space productivity.