CRA CRA Retail Financial Analysis & Metrics

Question 1

How is gross margin percentage calculated?

Accepted Answer

(Revenue − COGS) / Revenue × 100

Answer

COGS / Revenue × 100

Answer

Net income / Revenue × 100

Answer

Operating expenses / Revenue × 100

Question 2

What does 'sell-through rate' measure in retail inventory analysis?

Accepted Answer

Percentage of received inventory sold within a period

Answer

Rate at which items are returned by customers

Answer

Vendor on-time delivery percentage

Answer

Percentage of SKUs on promotion

Question 3

Which financial metric shows how many times a retailer sells and replaces its inventory in a year?

Accepted Answer

Inventory turnover ratio

Answer

Days sales outstanding

Answer

Current ratio

Answer

Debt-to-equity ratio

Question 4

A store's same-store sales (SSS) increased 5% year-over-year. What does this indicate?

Accepted Answer

Existing store locations grew revenue by 5%

Answer

Five new store locations opened

Answer

Online sales grew 5%

Answer

Total company sales grew 5%

Question 5

What is 'shrink' in retail financial reporting?

Accepted Answer

Inventory loss due to theft, damage, or administrative error

Answer

Planned markdown on seasonal items

Answer

Reduction in store headcount

Answer

Vendor deduction from invoice

Question 6

Which metric evaluates profitability per unit of selling space?

Accepted Answer

Sales per square foot

Answer

Return on assets

Answer

Gross margin return on inventory investment

Answer

Net present value