NTEA survey looks at distributor profit

The typical commercial truck and transportation equipment distributor had sales of $4,786,653 and a pre-tax profit of 2.7% in 2004. In contrast, the high-profit distributor had sales of $4,934,487 and a pre-tax profit of 8.6% during the same period of time. This gap is one of many operational issues analyzed in the recently released 2005 National Truck Equipment Association (NTEA) Distributor Profit Survey Report.

The report provides data that truck equipment distribution firms will find valuable in benchmarking the profitability of their businesses. Components include an explanation of statistics and executive summary containing an overview of the study results, with emphasis between the typical and high-profit truck equipment distributorship. Results cover return on investment, income statement, balance sheet, financial ratios, productivity ratios, line of business analysis, trend analysis, and an overview of the survey methodology and detailed information on the calculation of financial ratios used in the report. Results are tabulated and prepared for the NTEA by Profit Planning Group (Boulder CO).

To order a copy of the 2005 NTEA Distributor Profit Survey Report, visit NTEA.com; phone 800-441-NTEA; or e-mail [email protected]. It retails for $100 NTEA members; $200 non-members.

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