2018 Best Practices Study

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Current Ratio

1.65:1 1.76:1 11.1% 39.3% 21.6% 29.0% 12.1% 87.9%

1.87:1 2.88:1 10.2% 32.2%

2.13:1 2.41:1 16.0% 40.6%

1.78:1 2.12:1 12.6% 39.2%

1.60:1 2.12:1 10.7% 36.5%

1.40:1 1.72:1

Trust Ratio

Tangible Net Worth (% of Net Rev)

8.4%

Receivables/Payable Ratio

44.9%

Accounts Receivables: % Receivables Aged 61-90 Days % Receivables Aged Past 90 Days % of P&C Revenues - Agency Billed % of P&C Revenues - Direct Billed

18.6%

-33.0%

11.1%

8.0%

4.0% 2.7%

2.2%

9.7%

7.5%

14.1%

14.9% 85.1%

23.5% 74.1%

30.9% 69.1%

33.2% 58.7%

45.8% 54.2%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Current Ratio

3.57:1 2.41:1 26.8%

3.39:1 4.97:1 30.5% -19.4%

3.54:1 4.12:1 32.4%

3.10:1 3.58:1 28.4% 10.6%

2.59:1 3.61:1 24.2% -1.5%

2.22:1 3.15:1 25.9%

Trust Ratio

Tangible Net Worth (% of Net Rev)

Receivables/Payable Ratio

6.7%

4.3%

7.9%

Accounts Receivables: % Receivables Aged 61-90 Days % Receivables Aged Past 90 Days

0.8% 0.1%

-5.4%

-208.9% -60.4%

-3.0%

-1.6%

-5.5%

-23.0%

-13.4%

-15.5%

-20.6%

32.4%

30.5%

28.4%

26.8%

25.9%

24.2%

16.0%

12.6%

11.1%

10.7%

10.2%

8.4%

< $1.25M

$1.25M-$2.5M $2.5M-$5.0M $5.0M-$10.0M $10.0M-$25.0M

> $25.0M

Average Top Quartile

 67