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In 2015, independent pharmacies' overall gross margin from prescription and non-prescription products was 22.3%.The digest acknowledges that gross margin “remained relatively stable.” Once again, this survey's findings are consistent with government’s data, which also show stable drugstore gross margins. The industry margin is higher than the independent pharmacy margin because higher-margin non-prescription front-end products account for a higher share of sales at chain drugstores.It’s the second year in which the average owner’s compensation declined.The number of independent pharmacies and gross margins also are trending downwards.In a previous report, the NCPA Digest defined the sum of Owner Compensation and Operating Income as Owner's Discretionary Profit (ODP).Thus, ODP represents two of the three ways a pharmacy's gross profit dollars can be spent.Assessed value: amount in dollars at which a property is put on the assessment rolls.
Gross profit equals a pharmacy’s revenues minus the costs of products (net of discounts and returns) bought from a manufacturer or a wholesaler.For more on pharmacy and prescription economics, see Chapter 10 of our 2016 Economic Report on Retail, Mail, and Specialty Pharmacies.SIX OBSERVATIONS ON THE 2015 DATA OBSERVATION 1: Overall independent pharmacy profit margins have remained stable.THE NCPA DIGEST DATA The 2016 NCPA Digest, Sponsored by Cardinal Health publishes 2015 financial and operating data submitted by pharmacy owners.
Today’s post marks my eight annual review of the digest’s data.Carryforward (CF): a special provision allowing part of a net loss or unused credit in a given year to be distributed over one or two subsequent years, in order to ease the tax burden Casualty loss: a loss caused by the complete or partial destruction of property resulting from an unexpected event, i.e. Category (of taxable properties): all taxable properties in Vermont are classified into 15 categories based on their use.