88 / 123
AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000
88
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
1.19:1
1.68:1
Average
Top 25%
Tangible Net Worth (as % of Net Rev)
2.8% 23.6%
Average
Top 25%
Receivables/Payables Ratio
58.0% 12.3%
Average
Top 25%
Over 60
6.4%
4.3%
Over 90
3.9%
1.3%