2005 Best Practices Study
AGENCIES WITH REVENUES UNDER $500,000
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
1.09:1
1.48:1
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)
13.7% 27.1%
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
77.3% 34.6%
EMPLOYEE OVERVIEW
C2.
Aged Receivables
Average
Top 25%
Over 60 Over 90
56.2% 11.2% 36.7% 13.4%
PRODUCER INFO
SERVICE STAFF INFO
TECHNOLOGY
INSURANCE CARRIERS
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