When used as nouns, stock means a store of goods ready for sale, whereas store means a place where items may be accumulated or routinely kept. When used as verbs, stock means to have on hand for sale, whereas store means to keep (something) while not in use, generally in a place meant for that purpose.
Full Answer
What is a stock sale?
What Is a Stock Sale? In a stock sale, a company's shareholder sells their existing stock to a new owner. In this transaction, the buyer obtains all company equity including all assets and liabilities.
What does same store sales mean in accounting?
Table of Contents. Same-store sales is a financial metric that companies in the retail industry use to evaluate the total dollar amount of sales in the company's stores that have been operating for a year or more.
What do retail sales indicate?
Retail sales are a good indicator of the pulse of the economy and its projected path toward expansion or contraction. Retail sales figures are reported by all food service and retail stores. The measurement is typically based on data sampling and is used to model the patterns for the entire country.
What happens when a company sells its stock?
In a stock sale, a company's shareholder sells their existing stock to a new owner. In this transaction, the buyer obtains all company equity including all assets and liabilities.
What is a store's inventory?
A store inventory is a record of all the items available for use in your daily business operations. The store inventory increases with purchases and decreases with sales or consumption. It is important to track changes in your inventory so you can evaluate business performance, set future plans or detect theft.
What is the difference between stocking and merchandising?
Stockers spend much of their time transporting and lifting merchandise while in the process of filling shelves and building displays. The merchandising role requires the analysis of sales data and trends, such as when determining what items to carry or to put on sale.
Why is stocking shelves important?
Having sufficient stock on shelves ensures that customers have items to purchase. As a result, you can avoid risking lost profits because your customers cannot find what they want. You should also check shelves to ensure proper maintenance of your products.
How do you evaluate a retail stock?
Visit the Stores.Analyze Promotional Activities.Examine Gross Margin Trends.Focus on Sales-Per-Square-Foot Data.Examine Inventory/Receivable Trends.Examine Same-Store Sales Data Closely.Calculate and Compare P/E Ratios vs. Expected Earnings Growth Rates.Tabulate Tangible Book Value.More items...•
What does Stocking mean in business?
Merchandising is a process where retailers buy merchandise, manage inventory and present products for sale to customers. Stocking is a simpler process of taking merchandise from storage and putting it in displays or on shelves for sale. These processes are closely related and integral to retailing.
How can I be a better Stocker?
Most grocery companies provide on-the-job training, but you may find greater success in a Stocker role if you can lift at least 30 pounds or have experience using lifts, ladders, or, in some cases, forklifts. Being physically fit and able to be on your feet for a full shift may also help you succeed in a Stocker role.
What do you call someone who stocks shelves at a store?
A Stocker, or Stock Clerk, is responsible for making sure that consumers have access to the merchandise they are looking for by organizing product displays and storage. Their duties include counting inventory, adding price tags to items and putting products on shelves according to an organized system.
What is it called when you stock shelves?
In a lot of companies in the US, this job is called "stock associate." The responsibilities can include receiving shipments, stocking items in warehouses or on sales-floors, and assisting customers. Other possible terms are "store clerk" and "salesclerk."
What do you do in stocking?
Some of the duties stockers typically have typically include:Stocking store shelves with product shipments.Assembling and removing manufacturer marketing displays on the sales floor.Ensuring each stocking order has the correct products in the correct quantities.Maintaining the store's product warehouse area.More items...•
How do you analyze a stock before buying?
We bring you eleven financial ratios that one should look at before investing in a stock . P/E RATIO. ... PRICE-TO-BOOK VALUE. ... DEBT-TO-EQUITY RATIO. ... OPERATING PROFIT MARGIN (OPM) ... EV/EBITDA. ... PRICE/EARNINGS GROWTH RATIO. ... RETURN ON EQUITY. ... INTEREST COVERAGE RATIO.More items...
What is a good PE ratio for retail?
The total comes to 452.55. Divide this by seven, and you get 64.65—the average current P/E ratio for the retail sector overall....Calculating the P/E Ratio of the Retail Sector.Retail CategoryCurrent P/E RatioDistributors41.38General23.23Grocery and Food40.60Online133.683 more rows•Jun 30, 2021
How do you analyze stocks for beginners?
How to do Fundamental Analysis of Stocks:Understand the company. It is very important that you understand the company in which you intend to invest. ... Study the financial reports of the company. ... Check the debt. ... Find the company's competitors. ... Analyse the future prospects. ... Review all the aspects time to time.
STOCK SALE Definition
STOCK SALE is where the equity price is assumed to include the operating assets and operating liabilities of the sellers business and not include the long term liabilities assumed. The long term liabilities assumed are shown as a separate line item and when added to the equity price results in the deal price.
Learn new Accounting Terms
DUN is when you importune (beg or are insistent upon) a debtor for payment: a dunning letter.
What is the same store sales?
What is Same-Store Sales? Same-store sales, also known as comparable-store sales, is a financial metric commonly used by companies in the retail industry to evaluate the performance of existing stores.
What does it mean when a company has a positive same store sales figure?
A positive same-store sales figure means that the company generated more sales per store compared to last year – an indicator of growing customer demand. Types of Customers Customers play a significant role in any business.
Why do analysts use same store sales?
By providing the same-store sales metric, analysts can determine how well existing locations are performing. In fact, investors and analysts often keep a close eye on same-store sales due to it being a strong predictor of the health of retail operations and future success of a company. For analysts, same-store sales for retail companies often holds ...
When did Domino's Pizza report its earnings?
On July 16, 2019, Domino’s Pizza reported its quarterly earnings. Among other things, the company reported same-store sales of 2.1% for US stores, 3.1% for US franchise stores, and 2.4% for international stores. The company’s same-store sales were below analyst expectations. As a result, shares of Domino’s plummeted after its earnings announcement.
What is same store sales?
What Is Same-Store Sales? Same-store sales is a financial metric that companies in the retail industry use to evaluate the total dollar amount of sales in the company's stores that have been operating for a year or more . Same-store sales statistics provide a performance comparison for the established stores of a retail chain over ...
Why is it important to examine same store sales figures?
Examining same-store sales figures is helpful to investors in determining what portion of a company's current sales revenues are a result of sales growth in existing locations and what portion is accounted for by the opening of new stores.
Why do market analysts use same store sales?
Market analysts frequently use same-store sales to determine the effectiveness of the management of a retail chain in producing revenue growth from existing assets. Investors and market analysts prefer to see significant increases in same-store sales figures.
Definition of Same-Store Sales
- As companies expand, there are two main sources of revenue growth they can produce. There's growth through expansion -- for example, if a retail chain goes from 20 locations to 40 locations, it can roughly expect to double its revenue. There's also same-store sales growth. This refers to the change in sales volume from the company's pre-existinglocations. Generally, this is quoted on a…
Why It's Useful
- Same-store sales can be useful to know because it tells investors whether a company is actually growing in popularity or improving its pricing power, or if it's simply growing its sales by opening more and more stores. For instance, one rapidly growing retail chain may report revenue growth of 20%, but if same-store sales were flat for the year, it doesn't necessarily mean that the business …
An Example
- For a real-world example of this, let's take a look at Panera Bread's (PNRA)year-end results from 2015. The company and its franchisees opened a total of 112 new bakery-cafes during the year, a 6% increase from the previous year. Panera's total revenue grew by about 5.8% for the year, but the company's same-store sales only grew by 1.9%. The remaining growth was due to new store…
The Bottom Line on Same-Store Sales
- Like all financial metrics, same-store sales should be used as part of a well-rounded analysis, taking into account all of the available facts. Same-store sales can be useful for determining whether or not demand for a company's product is still growing. When combined with valuation metrics, this can help investors determine whether the stock of a ...
Importance of Same-Store Sales
Formula For Same-Store Sales
Example of Same-Store Sales
How to Interpret
- A positive (>0%) same-store sales figure is favorable, while a decrease (<0%) in same-store sales is detrimental. A positive same-store sales figure means that the company generated more sales per store compared to last year – an indicator of growing customer demand. On the other hand, a negative same-store sales figure means that the company gener...
Same-Store Sales in The News
More Resources
What Is Same-Store Sales?
- Same-store sales is a financial metric that companies in the retail industry use to evaluate the total dollar amount of sales in the company's stores that have been operating for a year or more. Same-store sales statistics provide a performance comparison for the established stores of a retail chain over a given time period, such as a fiscal yearor...
Understanding Same-Store Sales
Why Same-Store Sales Matter
Example