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AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000
72
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
1.23:1
1.82:1
Average
Top 25%
Tangible Net Worth (as % of Net Rev)
6.6% 24.4%
Average
Top 25%
Receivables/Payables Ratio
50.3%
1.8%
Average
Top 25%
Over 60
16.6%
1.7%
Over 90
6.4%
1.6%