These Are the Most Important Pharmacy Metrics to Measure

These Are the Most Important Pharmacy Metrics to Measure by Elements magazine |

Update: This article is now available as a white paper! Download the white paper for free today.

We’ve upgraded this article and are now providing it exclusively as a white paper. Don’t worry, you can download it for free!

We decided to transition this article into a white paper to provide maximum value in an easy-to-read format. The white paper includes 30+ formulas to calculate the most important metrics for independent pharmacies. You’ll learn to think like a retailer, discover the methods to track and measure meaningful pharmacy metrics, and learn ways to use pharmacy metrics to get insight into business performance.

Get ready to dive into your numbers. Clark Balcom, pharmacy business expert and COO of PBA Health, explains the top categories of metrics pharmacies should pay attention to, how to calculate them, and what to do to improve your numbers.

Ready? Download the white paper here.

Here’s a peek at what’s inside the white paper:

Formulas for improving sales volume and growth:

  • Total Prescriptions, Total Return-to-Stock Prescriptions, Average Prescriptions per Day, Average Return-to-Stock Prescriptions per Day
  • Total Sales, Total Lost Return-to-Stock Sales, Average Sales per Day, Average Lost Return-to-Stock Sales per Day
  • Marketing and Sales Expense (as a percentage of sales), Prescriptions and Sales per Top Prescriber, Prescriptions and Sales per Top Patient

Metrics to calculate profitability:

  • Gross Profit Margin (dollars), Gross Profit Margin Rate (percentage)
  • Inventory Cost of Goods (as a percentage of sales)
  • Average Fee per Prescription Category, Average Inventory Cost per Prescription Category

A look at how to calculate your pharmacy’s productivity and operating efficiency:

  • Payroll Expenses per Employee, Sales per Payroll Dollar Expended, Payroll Expense (as a percentage of sales), Gross Margin per Payroll Dollar Expended
  • Total Operating Expenses (as a percentage of sales)
  • Sales per Pharmacy Square Foot, Rent Expense per Square Foot, Rent Expense (as a percentage of sales)

Formulas to measure cash flow, working capital, and asset management efficiency:

  • Aged & Past Due Accounts Receivable, Accounts Receivable Turnover, Accounts Receivable Turn Days
  • Total Inventory, Total Inventory (as a percentage of sales), Inventory Turnover, Inventory Turn Days, Accounts Payable Turnover, Accounts Payable Turn Days
  • Sales to Assets (asset turnover), Return on Assets

Measurements to calculate solvency, stability, and liquidity:

  • Current Ratio, Quick Ratio, Debt to Equity (net worth) Ratio, Debt Ratio, Equity Ratio
  • Times Interest Earned

You’ll get all of the formulas to make these calculations, plus tips on how to improve each specific measurement.


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Elements is written and produced by PBA Health, a buy-side solutions company.

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