43 / 110
Analysis of Agencies with Revenues
Between $500,000 and $1,250,000
FINANCIAL STABILITY
A. Current Ratio
Liquidity/Current Ratio
1.37:1
2.19:1
B. Tangible Net Worth
Average
Tangible Net Worth (as % of Net Rev)
5.8%
22.4%
C. Receivables
1. Receivables/Payables Ratio
Receivables/Payables Ratio
61.3%
-11.5%
2. Aged Receivables
Over 60
44.0%
18.0%
Over 90
45.1%
18.1%
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.
Average
Top 25%
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.
Top 25%
This factor measures the collection practices of an agency, with a lower ratio representing
Average
Top 25%
more timely collections. (Calculated by dividing total receivables by total payables at a given
point in time.)
Average
Top 25%
40