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AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000

56

2005

PROFILE

REVENUES/

EXPENSES

FINANCIAL

STABILITY

EMPLOYEE

OVERVIEW

PRODUCER

INFO

SERVICE

STAFF

INFO

TECHNOLOGY

INSURANCE

CARRIERS

FINANCIAL STABILITY

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.

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

.

C1.

Receivables

The following ratio measures the collection practices of an agency, with a lower ratio

representing more timely collections.

C2.

Aged Receivables

Average

Top 25%

Liquidity/Current Ratio

1.42:1

2.05:1

Average

Top 25%

Tangible Net Worth (as % of Net Rev)

12.9% 36.0%

Average

Top 25%

Receivables/Payables Ratio

53.2%

2.3%

Average

Top 25%

Over 60

26.0%

9.3%

Over 90

20.6%

4.9%