Financial Statements Reveal Profitability’s Underlying Causes

Benchmarking data allows companies to identify strategies, markets and best practices to facilitate their growth and long-term success.

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TRSA member companies confidentially submit balance sheets, income statements and other data to an independent third party to create the Industry Performance Report. Each member receives a customized individual Financial Performance Report (FPR) at no charge. For example, data reported by a uniform rental specialist with only one location and $4 million in annual revenue would be included in the report’s tables on industrial, single-plant, and under-$5-million companies. Likewise, this participant’s FPR makes it easier for him or her to compare their own statistics with those of all respondents in these three classifications.

For each classification, the Industry Performance Report offers consolidated income statements and balance sheets, strategic profit model ratios (to determine return on investment), financial ratios, production profiles, wage and benefit cost salary summaries and employee productivity ratios (see details in Backgrounder below).

A trend analysis section highlights key long-term performance statistics for the industry’s four business-line specialties (linen, healthcare, industrial, mixed). These sections present balance-sheet and income-statement data for the average plant in each classification for the past five years. Year-to-year strategic profit model ratios are included as well, along with total sales, pounds processed, and sales and numbers of customers per route.

**BACKGROUNDER: Industry Performance Report Tables**

The report calculates industry median performance for various classifications of rental laundry operations (by specialty line, number of locations and sales volume) in these financial measures:

Strategic Profit Model Ratios

Profit Margin
Asset Turnover
Return on Assets
Financial Leverage
Return on Net Worth

Financial Ratios

Current Ratio
Quick Ratio
Cash to Current Liabilities
Debt to Equity
EBIT to Total Assets Times Interest Earned
Average Collection Period
Inventory Holding Period

Income Statement Expenses

Merchandise
Plant Operations (including wages/salaries, outside processing, supplies, utilities, insurance, depreciation, building)
Delivery (service department wages/salaries, fuel, insurance, depreciation, branch/depot)
Sales (salaries/commissions, other)
Office and Administrative (clerical wages, management/executive compensation, taxes, benefits, bad debt, depreciation)

Capital Expenditures

Total capital expenditures are shown as a percentage of sales and these expenditures are expressed as a proportion of annual depreciation cost. They are dispersed as: