FEDA Profit Survey

The FEDA PROFIT Report provides detailed financial results of food service equipment distribution firms. Results profiled in this report are based on income statement, balance sheet, and operating data. The tables and graphs contained in this report are designed to provide comprehensive, yet straightforward guidelines for analyzing profitability among food service equipment companies.

The profit survey is conducted by Dr. Albert Bates of the Profit Planning Group and all individual company results are kept completely confidential by the Profit Planning Group. Only aggregate results are reported. You must be a FEDA member to participate and only survey participants receive the survey results. The entire program is free to FEDA members and subsidized by FEDA.

Report Format

The report is organized into a number of sections, each designed to assist management in a specific area of inquiry:

•    Executive Summary—The summary provides an overview of the study results, with emphasis on the differences between the typical firm and the high profit company.

•    Detailed Results—In-depth reporting of return on investment, income statement, balance sheet, financial ratios and productivity ratios is provided in this section of the report. Management commentary is provided to focus on the importance of these operating statistics.

•    Line of Business Analysis—This section profiles FEDA member results based upon their concentration of sales in either the “Supplies” or “Equipment” product categories.

•    Regional Analysis—Detailed results are presented in this section for FEDA members by region. Participants were grouped according to the four FEDA areas: North East, North Central, South, and West.

•    Trend Analysis—The trend section highlights how performance has changed over time on key measures.

•    Appendix—Finally, the appendix provides an overview of the survey methodology and detailed information on the calculation of the financial ratios used in the report.

Explanation of Statistics
Almost all of the figures provided in this report are medians. The median for a particular variable or calculation is the middle number of all values reported from lowest to highest. The median represents the typical company’s results. The median is not influenced by any extremely high or low values reported. An average or mean value, on the other hand, may be influenced by extreme values. Thus, the median is the preferred statistic for this analysis.

To determine the group of high profit firms, all participating firms are ranked on the basis of pre-tax return on assets (ROA). The high profit category includes the top twenty-five percent of the firms based on ROA. The figures reported for the high profit firms represent a median for this group.

Mean results are used in reporting Sales By Product Category. The mean is simply the arithmetic average.

If you have questions about the Profit Survey or are interested in participating in the survey, please contact Adela Ramos at adela@feda.com or 224-293-6500.