The art part is spotting trends and relationships. Step one is to look at each ratio and notice which are getting stronger over time, which weaker, and which are relatively stable. This historical analysis provides context for what has been happening. It is not, however, a predictor of the future, since management can take actions to change course, and factors outside the co-op also have an impact. Here, primary attention is paid to ratios that are outside the upper and lower quartiles, and the focus is on the most recent results.
Sales is a common element in nine ratios.
At Ocean Beach, however, five of those are stronger while four are weaker over time. Sales ratios are also present on both sides of the variance line. The inconsistency here suggests that sales is not at the root of their strengths or weaknesses. Sales per Sq. Ft. is strong historically and compared to peers, and Inventory Turnover is high, so we can safely conclude that they are pushing a lot of product through their space.