2024 BPS Study_Final (8.16.24)

Financial Stability

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Current Ratio

1.28:1

1.89:1 2.54:1 15.3% 40.2% 10.7% 29.6% 25.3% 74.7%

2.07:1 2.41:1 16.9% 63.4% 26.8% 17.6% 16.5% 83.5%

1.95:1 2.63:1 23.5% 65.5%

1.76:1 2.29:1 16.2% 59.5%

1.69:1 1.94:1 21.1% 67.6%

Trust Ratio

N/A

Tangible Net Worth (% of Net Rev)

8.2%

Receivables-to-Payables Ratio

76.7%

Accounts Receivables: % Receivables Aged 61-90 Days % Receivables Aged Past 90 Days % of P&C Revenues - Agency Billed % of P&C Revenues - Direct Billed

8.4%

8.7%

9.2%

4.9% 8.5%

24.6%

17.1%

14.8%

13.0% 87.0%

27.5% 72.5%

36.4% 63.6%

42.6% 57.4%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Current Ratio

0.99:1

3.16:1 3.39:1 25.9%

2.63:1 3.37:1 26.9% 23.8%

2.40:1 3.36:1 33.6% 21.9%

2.35:1 2.92:1 24.6% 30.4%

2.28:1 2.26:1 31.2% 44.9%

Trust Ratio

N/A

Tangible Net Worth (% of Net Rev)

15.7% 53.8%

Receivables-to-Payables Ratio

0.0%

Accounts Receivables: % Receivables Aged 61-90 Days % Receivables Aged Past 90 Days

0.0%

0.0% 5.0%

0.1% 2.0%

0.0% 4.4%

0.3% 2.8%

1.6% 1.4%

22.9%

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

38.9%

37.6%

29.5% 26.2%

48.1%

49.0% 11.4%

49.7%

Industry Lender

5.6% 0.0% 5.6%

3.5% 3.5%

6.8% 2.1%

1.9% 7.7%

Private Equity Lender

0.0%

3.7%

Shareholder

21.2% 34.1%

41.7%

24.3% 18.7%

24.4% 11.4%

28.6% 12.1%

Other

50.0%

2.6%

% of Firms that have Identified Debt

47.4%

41.4%

38.9%

43.1%

43.8%

54.2%

Of those firms that have debt: Average Total Debt

$371,915

$494,488

$1,134,465

$2,575,022

$6,609,590 $34,055,220

Total Leverage 1

1.3x

1.2x

0.9x

2.3x

1.4x

1.9x

Average Effective Interest Rate Average Term (Years to Maturity)

7.4%

4.7%

5.3%

5.1%

5.2%

6.3%

10.3

7.9

7.9

7.7

7.4

6.2

1 Total Debt/Pro Forma EBITDA

Cross Category Comparison

58