2001 Best Practices Study
Analysis of Agencies with Revenues Less Than $500,000
CSR Summary
Average Book Serviced/CSR (Commissions)
Average Pay as % of Book Serviced
$250,000
30%
$200,000
20%
$150,000
$100,000
10%
$50,000
0%
$0
Commercial P&C Group L&H Personal P&C
Multi-Line
Commercial P&C
Group L&H Personal P&C Multi-Line
Average Top 25%
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.
Average
Top 25%
Liquidity/Current Ratio
1.29:1
2.02:1
B. Tangible Net Worth
ability to invest in new opportunities, develop new products, hire new employees, make other capital expenditures and handle stockholder redemption obligations. 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
Average
Top 25%
Tangible Net Worth (as % of Net Rev)
7.8%
26.8%
C. Receivables
1. Receivables/Payables Ratio
This factor measures the collection practices of an agency, with a lower ratio representing more timely collections. (Calculated by dividing total receivables by total payables at a given point in time.) Average Top 25%
Receivables/Payables Ratio
57.7%
13.6%
2. Aged Receivables
Average
Top 25%
Over 60 Over 90
14.7%
8.1% 3.0%
3.1%
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