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What should key ratios be for a typical catalog company, both consumer and b-to-b? Below, I provide several key ratio guidelines, but keep in mind these ratios vary by catalog company. Again, the key to profitability is to manage these key ratios. If, for example, you prospect more aggressively, you’ll increase your selling-expense-to-sales ratio, and doing so could result in a loss on your income statement. Yet, you might decide to accept a short-term loss on the bottom line in exchange for long-term growth and improved profitability. Just know the probable impact such decisions will make on your income statement before you act.
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- Companies:
- Lett Direct Inc.
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