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Analysis of Agencies with Revenues Greater Than $10,000,000
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VI.
Financial Stability (Agencies with Revenues Greater Than $10,000,000)
A. Current Ratio
A current ratio greater than 1:1 indicates that cash and assets with short-term maturities are
sufficient to meet a firm's short-term obligations.
Liquidity/Current Ratio
1.17:1
1.45:1
B. Tangible Net Worth
The tangible net worth is an important measure as it represents the net value of the corporation
if it were liquidated. A low or negative tangible net worth impacts a firm's ability to invest
in new opportunities, develop new products, hire new employees, make other capital
expenditures and handle stockholder redemption obligations.
Tangible Net Worth (as a % of Net Rev)
11.2%
33.7%
C. Receivables
1. Receivables/Payable Ratio
This factor measures the collection practices of an agency, with a lower ratio representing
more timely collections. (Calculated by dividing total receivables by total payable at a given
point in time.)
Receivables/Payables Ratio
51.0%
18.4%
2. Aged Receivables
Over 60
8.9%
3.2%
Over 90
2.4%
1.6%
Top 25%
Top 25%
Average
Top 25%
Average
Top 25%
Average
Average
VII. Carrier Representation (Agencies with Revenues Greater Than $10,000,000)
Average +25% Profit +25% Growth
Personal Lines
National
7.3
3.0
4.3
Regional
2.3
1.8
3.3
Commercial Lines
National
33.5
12.7
19.0
Regional
20.5
4.3
15.3
Total Carriers
63.6
21.7
41.8
% of Net Rev from Top Carrier
9.5%
15.1%
8.5%
% of Net Rev from Top 3 Carriers
18.5%
25.3%
16.0%