2023 Best Practices Study
Financial Stability
AGENCIES WITH REVENUES OF:
AVERAGE
<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M
Current Ratio
1.3:1
2.0:1
2.1:1
2.1:1
1.6:1
1.7:1
Trust Ratio
2.8:1
2.8:1
2.3:1
2.3:1
2.4:1
2.0:1
Tangible Net Worth (% of Net Rev)
13.2%
13.8%
16.6%
22.8%
20.5%
18.0%
Receivables-to-Payables Ratio
50.0%
50.0%
60.0%
70.0%
70.0%
70.0%
Accounts Receivables: % Receivables Aged 61-90 Days
18.2%
31.2%
14.1%
12.6%
11.1%
9.7%
% Receivables Aged Past 90 Days
38.8%
13.1%
18.6%
11.4%
12.2%
12.0%
% of P&C Revenues - Agency Billed
40.3%
24.9%
21.2%
28.2%
33.8%
45.6%
% of P&C Revenues - Direct Billed
59.7%
75.1%
78.8%
71.8%
66.2%
54.4%
AGENCIES WITH REVENUES OF:
TOP QUARTILE
<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M
Current Ratio
1.4:1
2.5:1
3.0:1
2.8:1
2.2:1
2.1:1
Trust Ratio
3.2:1
3.0:1
2.8:1
2.6:1
3.2:1
2.4:1
Tangible Net Worth (% of Net Rev)
26.0%
26.7%
23.0%
34.4%
30.7%
29.2%
Receivables-to-Payables Ratio
-
10.0%
30.0%
30.0%
40.0%
40.0%
Accounts Receivables: % Receivables Aged 61-90 Days
0.0%
0.0%
0.0%
0.0%
0.5%
1.4%
% Receivables Aged Past 90 Days
27.6%
3.2%
6.9%
3.9%
2.0%
1.6%
AGENCIES WITH REVENUES OF:
AVERAGE
<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M
Debt Metrics: % of All Loans by Source Type: Community Bank
39.4%
38.2%
34.9%
47.1%
57.7%
52.1%
Industry Lender
4.5%
17.6%
11.5%
6.9%
8.1%
1.6%
Private Equity Lender
0.0%
0.0%
2.1%
3.2%
5.6%
9.4%
Shareholder
19.7%
23.5%
51.0%
25.4%
19.7%
24.9%
Other
36.4%
20.6%
0.5%
17.3%
9.0%
12.0%
% of Firms that have Identified Debt
50.0%
54.8%
55.8%
48.2%
50.0%
61.7%
Of those firms that have debt: Average Total Debt
$346,861
$581,302
$901,898
$2,617,141
$4,293,328 $43,759,937
Total Leverage 1
1.5x
1.6x
1.0x
1.5x
1.1x
1.7x
Average Effective Interest Rate
6.4%
4.2%
3.9%
4.4%
4.3%
5.2%
Average Term (Years to Maturity)
5.7
7.6
8.1
7.1
7.5
6.1
1 Total Debt/Pro Forma EBITDA
Cross Category Comparison
57
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