Margin Madness
What is the most inclusive Margin measure?
A: Transaction Margin
B: Commission Margin
C. Adjusted Gross Margin
D: Sell Margin
C: Adjusted Gross Margin
*DOUBLE POINTS*
Name the 5 elements of AGM
For warehouse deliveries on Veritiv Trucks, what is the typical maximum delivery radius?
A: 75 miles
B: 100 miles
C: 125 miles
D: 150 miles
C: 125 miles
What is the value of one day of DSO improvement in terms of available Working Capital?
A: $2 M
B: $6 M
C: $9 M
D: $12 M
C: $9M
*DOUBLE POINTS*
What is our current DSO (Total FS & Pkg)?
What does EBITDA stand for?
Earnings Before Interest, Taxes, Depreciation and Amortization
How can margins be improved without impacting the customer?
A: Vendor Rebate/Payment term discounts
B: Cost Support Deviations
C: Reduce D&E
D: Increase Commission Loads
E: A, B, & C
E: A, B, & C
Vendor Rebates/Payment Term discounts
Cost Support Deviations
Reduce D&E
What is the average cost per delivery on a Veritiv truck?
A: $75
B: $97
C: $112
D: $137
C: $112
What is the current DIOH? Target DIOH?
A: 61 Days, 90 Days
B: 69 Days, 66 Days
C: 83 Days, 61 Days
D: 91 Days, 73 Days
B: Current DIOH 69, Target of 66 by the end of the year
*DOUBLE POINTS*
What is the value of one day DIOH improvement in terms of available Working Capital?
What is Veritiv Contribution?
A measure of profitability equal to Adj. Gross Profit minus variable costs
Where does the highest Adjusted Gross Margin quartile begin for Corporate Accounts?
A: >15%
B: >20%
C: >30%
D: >40%
C: 30%+ (31.4%-35.0%)
What is the average Warehouse Sales per Order?
A: $1,370
B: $556
C: $929
D: $250
A: $1,370
What is the total value of Veritiv's Customer Dedicated Inventory?
A: $200 M
B: $150 M
C: $100 M
D: $50 M
A: $200 M
What does EVA stand for?
Economic Value Add (EBITDA adding back Working Capital)
*DOUBLE POINTS*
When requesting an EVA, what is the standard lead time and best Finance contact?
If supplier cost increases by 6%, how much does customer price need to increase to maintain the current sell margin rate?
A: 6.25%
B: 6.00%
C: 6.50%
D: 5.80%
B: 6.00%
What is the margin differential to cover the cost of having a local sales rep?
A: 0.5%
B: 2.5%
C: 3.5%
D: 7.5%
B: 2.5%
What is the financing rate used for EVA financial modeling?
A: 5%
B: 7%
C: 10%
D: 12%
D: 12%
*DAILY DOUBLE*
What does ROIC stand for and why is it important?
Return on Invested Capital
*Steve video insert*