Being a typical truck equipment distributorship that earns 3.5% profit isn't "good enough" when a high-profit firm can generate a profit margin of 7.8%, according to the 2007 Distributor Profit Survey Report recently released by the National Truck Equipment Association (NTEA). Survey results are based on 2006 data.
The findings are based on income statement, balance sheet and operating data provided by participating NTEA Distributor Members and provide guidelines for analyzing profitability among truck equipment companies. The Report looks at three major factors - sales growth, gross margin and payroll expenses - that influence a profit margin.
"Firms that can successfully control these items have a major financial advantage," said Al Bates, founder and president of Profit Planning Group (Boulder, CO). Profit Planning Group has been conducting the survey for the NTEA for more than 25 years.
The Report's Executive Summary reviews the results and emphasizes the differences between the typical and high-profit NTEA member. Other sections include:
* Detailed Results examine return on investment, income statement, balance sheet, financial ratios and productivity ratios.
* Line of Business and Market Area Analysis reviews the performance of participating NTEA members segmented by distributor focus and market area. * Trend Analysis highlights how performance has changed over time in key areas.
* Appendix provides an overview of the survey methodology and detailed information on the calculation of the ratios.
* Survey participants have received a free Report as well as a personalized comparison of their firm's financial performance to the industry. Nonparticipating NTEA members may purchase the Report for $100. Nonmembers may purchase the report for $200. To purchase a copy or for more information, visit NTEA.com, or call 1-800-441-NTEA (6832).