Sample Profit & Loss Statement
The organization of your income statement is incredibly important. For example, all direct selling expenses should be grouped together and not shown as part of other operating expenses. That is because the direct selling expense to sales ratio is critical. This typically ranges from 25% to 35% for consumer (B2C) catalog companies and approximately 20% for business-to-business (B2B) catalogers. See how your ratios compare with our industry ratios. It is normal for ratios to vary by company.
B2B | B2C | |
---|---|---|
Total Gross Merchandise Sales | 97.50% | 106.00% |
Less: Returns & Allowances | -2.50% | -6.00% |
Net Sales | 100.00% | 100.00% |
Less: Cost-of-Goods | 48.00% | 40.00% |
Gross Margin | 52.00% | 60.00% |
Direct Selling Expenses | ||
Creative/Preparation | 1.50% | 3.06% |
Print and Paper; Ink-Jet Address | 7.00% | 8.30% |
Postage | 5.00% | 11.60% |
List Rental | 1.00% | 2.71% |
Merge / Purge | 0.75% | 0.30% |
Internet Marketing | 3.00% | 3.50% |
Total – Direct Selling Expenses | 18.25% | 29.47% |
Operating Expenses | ||
Packing Materials | 0.65% | 1.50% |
Outbound Freight | 5.00% | 9.60% |
Shipping & Handling Revenue | -6.00% | -14.85% |
Telephone Line Charges | 1.00% | 2.10% |
Salaries and Wages | 1.00% | 10.60% |
Total Payroll Taxes | 1.00% | 1.00% |
Total Employee Benefits | 1.00% | 1.60% |
Credit Card Fees | 0.25% | 3.00% |
Rent | 1.25% | 2.40% |
Depreciation | 0.50% | 0.80% |
Utilities | 0.50% | 0.60% |
Insurance | 0.25% | 0.30% |
Equipment Rentals | 0.75% | 0.50% |
Maintenance & Repairs | 0.60% | 0.35% |
Dues, Fees and Subs | 0.15% | 0.04% |
Professional Fees | 0.80% | 2.50% |
Office Postage | 0.80% | 0.19% |
Supplies | 0.80% | 0.40% |
Travel and Entertainment | 0.50% | 0.30% |
Other G&A Expenses | 1.00% | 1.10% |
Interest Expenses | 0.50% | 1.80% |
Total – G&A Expenses | 12.30% | 25.83% |
Total SG&A Expenses | 30.55% | 55.30% |
Operating Income (Loss) | 21.45% | 4.70% |
Net List Rental Income | 0.50% | 1.00% |
Income (Loss) – EBIT | 21.95% | 5.70% |