2008 Best Practices Study
Agencies with Revenues under $1,250,000
 
   
 

 

Financial Stability
  Average Top 25%
Balance Sheet
Current Ratio 1.37:1 2.12:1
Tangible Net Worth (% of Net Revenue) 11.7% 30.4%
Receivables/Payables Ratio 73.5% 14.3%
Aged Receivables
% Receivables Aged Past 60 Days 17.5% 7.5%
% Receivables Aged Past 90 Days 10.1% 6.1%

Accounts Receivable
  Average +25% Profit +25% Growth
Agency Billed vs. Direct Billed by Carrier
% of P&C Revenues that are Agency Billed 13.6% 7.5% 18.6%
% of P&C Revenues that are Direct Billed 86.4% 92.5% 81.4%

 

 

 
     
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