Corporate Accounts: Finance Session

Margin Madness

100

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 

200

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

300

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%)

400

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%

Metrics That Matter

100

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

200

What is the average cost per delivery on a Veritiv truck?

A: $75
B: $97
C: $112
D: $137

C: $112

300

What is the average Warehouse Sales per Order?

A: $1,370
B: $556
C: $929
D: $250

A: $1,370

400

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%

Balance Sheet Buffet

100

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)?

200

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?

300

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

400

What is the financing rate used for EVA financial modeling?

A: 5%
B: 7%
C: 10%
D: 12%

D: 12%

The Things We Say

100

What does EBITDA stand for?

Earnings Before Interest, Taxes, Depreciation and Amortization

200

What is Veritiv Contribution?

A measure of profitability equal to Adj. Gross Profit minus variable costs

300

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?

400

*DAILY DOUBLE*

What does ROIC stand for and why is it important?

Return on Invested Capital
*Steve video insert*