2005 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000

FINANCIAL STABILITY

2005

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.

Average

Top 25%

Liquidity/Current Ratio

1.19:1

1.66:1

PROFILE

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 .

REVENUES/ EXPENSES

Average

Top 25%

Tangible Net Worth (as % of Net Rev)

8.1% 24.0%

FINANCIAL STABILITY

C1.

Receivables The following ratio measures the collection practices of an agency, with a lower ratio representing more timely collections.

Average

Top 25%

Receivables/Payables Ratio

74.8%

2.1%

EMPLOYEE OVERVIEW

C2.

Aged Receivables

Average

Top 25%

Over 60 Over 90

25.4% 18.7%

3.5% 5.0%

PRODUCER INFO

SERVICE STAFF INFO

TECHNOLOGY

INSURANCE CARRIERS

24