NATIONAL COMMUNITY PHARMACISTS ASSOCIATION

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TABLE 9 • 2008 Common-Sized (Average) Income StatementPercentage of Total Sales—By Third-Party Prescription ActivityLess than 80% Third Party 80% to 90% Third Party 90% or more Third PartySalesPrescription sales 93.2% 93.3% 93.4%All other sales 6.8% 6.7% 6.6%Total Sales 100% 100% 100%Cost of Goods SoldPrescriptions costs 70.8% 72.4% 72.1%All other costs 4% 4.2% 5.1%Total Cost of Goods Sold 74.8% 76.6% 77.2%Gross Profit 25.2% 23.4% 22.8%Operating ExpensesPayroll expensesSalaries, wages 11.6% 11.7% 11.6%Payroll taxes, workers’ comp, employee benefits 1.8% 1.8% 1.6%Payroll Expenses 13.4% 13.5% 13.2%Other Operating ExpensesAdvertising 0.5% 0.5% 0.5%Insurance 0.5% 0.4% 0.4%Store supplies, containers, labels 0.5% 0.5% 0.5%Office postage 0.1% 0.1% 0.1%Delivery service 0.4% 0.2% 0.2%Pharmacy computer expense 0.5% 0.4% 0.4%Rent 1.2% 1.2% 1.2%Utilities, telephone 0.4% 0.4% 0.5%All other operating expenses 3.7% 3.2% 2.9%Total Other Operating Expenses 7.8% 6.9% 6.7%Total Expenses 21.2% 20.4% 19.9%Net Operating Income 4.0% 3.0% 2.9%282009 NCPA Digest, sponsored by Cardinal Health
Table 10 • 2008 Median Financial Benchmarks—By Third-Party Prescription ActivityLess than 80% Third Party 80% to 90% Third Party 90% or more Third PartyProfitability RatiosNet operating income percentage 3.32% 2.80% 2.94%Net operating income dollars before tax $127,620 $83,565 $101,873Productivity RatiosSales per employee $385,184 $393,483 $424,282Staff costs per employee $47,500 $39,696 $44,364Prescription sales per square foot $3,900 $3,862 $3,631Other sales per square foot $72 $88 $86Total sales per square foot $1,203 $1,302 $1,113Median sales $3,073,295 $3,113,643 $3,597,873Financial Position RatiosSales to assets 5.23 5.73 5.29Return on investment 30% 21% 31.6%Debt to worth 0.30 0.48 0.71Cash Flow RatiosCurrent ratio 4.20 3.97 3.22Quick ratio 2.07 1.57 1.56Inventory turnover (annual) 10.5 10.3 10.1Inventory turnover (days) 35 days 36 days 36 daysPrescription inventory turnover (annual) 12.9 10.9 11.6Accounts receivable turnover (annual) 21.7 25.1 21.6Accounts receivable collection (days) 17 days 15 days 17 daysAccounts payable turnover (annual) 25.6 24.8 22.1Accounts payable turnover (days) 12 days 15 days 17 daysThird-Party Prescriptions29
Page 1 and 2: National Community Pharmacists Asso
Page 3 and 4: [October 2009]Dear Valued NCPA Memb
Page 5 and 6: Figures1. Average annual sales (in
Page 7 and 8: Figure 1 • Average Annual Sales (
Page 10 and 11: Operating Results To determine how
Page 12 and 13: Operating Expense ManagementWe eval
Page 14 and 15: Financial PositionManaging Assets a
Page 16 and 17: Table 2 • 2008 Common-Sized (Aver
Page 20 and 21: ProfitabilityExpense ManagementThe
Page 26 and 27: If a pharmacy is to make a profit,
Page 30 and 31: AssetsTABLE 11 • 2008 Common-Size
Page 32 and 33: TABLE 13 • 2008 Median Financial
Page 34 and 35: Geographic SummaryConditions of the
Page 36 and 37: TABLE 16 • 2008 Median Financial
Page 38 and 39: Rural/Metro Pharmacy LocationPharma
Page 40 and 41: AssetsTABLE 20 • 2008 Common Size
Page 42: Common-Sized Balance SheetThe balan

NATIONAL COMMUNITY PHARMACISTS ASSOCIATION

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