How do you measure up?

Rent to Own has changed drastically in the last decade. There are several models being used today. These different models are best observed in the large chains. By breaking the numbers down to a 'per-store' level, you can compare your model to any of the large companies and see where you fit in.

Dan Companion has calculated 5 key-variables on a per store basis for the 6 public, North American RTO Companies. Companies are ranked in each category.

In this comparison, the 5 key-variables are...

• Core Revenue
  • Rental, Fee, and Retail revenue
• Sales per employee
  • In dollars, based on store level employees only
• Gross Profit Margin
  • Method of depreciation may vary from company to company and may affect gross profit margin
• Annual Purchases per location
  • Inventory purchased annually
• Average Square feet per store
  • Store Size

These rankings are estimates. All calculations are based on 2001 annual reports. Since the level of detail in companies annual reports varies, some calculations are not available for all companies and actual rankings may differ.

Companies are ranked in each category.

Rank	Core Rental, Fee, and Retail Revenue Per Location
1	Aaron Rents	$1,045,066
2	Rainbow	$883,692
3	Rent A Center	$766,813
4	Rent Way	$562,504
5	RTO Enterprises	$521,223
6	Bestway	$448,913

Rank	Gross Profit Margin
1	Rent A Center	76.23%
2	Bestway	72.9%
3	RTO Enterprises	69.13%
4	Aaron Rents	67.94%
5	Rainbow	64.77%
6	Rent Way	63.04%
	Gross Profit Margin = Total Core Revenue minus (Depreciation expense, cost of goods sold and write-off)

Rank	Sales per employee
1	Aaron Rents	$149,285
2	Rent A Center	$135,800
3	Rainbow	$115,311
4	Rent Way	$114,814
5	Bestway	$110,538
6	RTO Enterprises	$102,510
	Core Revenue divided by Store Level employees

Rank	Annual Purchases per location
1	Rainbow	$329,091
2	Rent A Center	$233,450
3	Rent Way	$165,000
	Aaron Rents	NA
	Bestway	NA
	RTO Enterprises	NA