New Financial Ratios Study
Details Business Trends of NAGASA Members
Results of 12th annual survey now available
Washington, DC, September 24, 1998 — NAGASA, the North
American Graphic Arts Suppliers Association, has released its annual study
of financial ratios among dealers and value-added resellers of graphic
arts supplies and equipment. The results of the study were compiled by
Donlin & Stevens, a CPA firm in Highland Heights, Kentucky.
The 1998 Financial Ratios Study of Dealers and Resellers
contains data from 43 dealers and resellers who reported on operations
at year end 1997. The responding dealers reported total 1997 sales of
more than $1.2 billion, with average sales of more than $19.6 million.
The dealers reported gross margins of 17.7 percent in 1997, a slight decline
from the 18.1 percent reported in 1996. Responses also indicated a decrease
in pretax profits, dropping from 2.7 percent in 1996 to 1.9 percent in
1997.
Dealers with sales over $10 million saw their margins drop
slightly, from 17.4 percent in 1996 to 17.2 percent. Dealers billing less
than $10 million continued a three-year trend of increasing gross margins,
reporting 24.8 percent in 1997, up from 22 percent in 1995. The report
also indicates that equipment dealers held gross margins essentially steady.
Since 1985, dealers and resellers have relied on the NAGASA
Financial Ratios to examine their dealership’s performance and assess
how they stack against the competition. The 20-page study includes detailed
data relating to return on assets, return on net worth, current net profits,
debt, inventory turnover and much more.
”The survey is a vital tool for all members of the
dealer channel.,“ said Vickie Braxton Schulz, NAGASA Membership Director.
”Dealers, VARs and manufacturers can all use the survey to better
understand their businesses and their relationships with others in the
industry,“ The survey is available free of charge to participants.
NAGASA members can purchase a copy of the survey for $95, while non-members
can obtain a copy for $155.
NAGASA is the largest trade association in the world representing
the distribution channel
in the graphic arts, printing, and imaging industry. The NAGASA network
of dealers, resellers, and VARs sells more than $4.5 billion of traditional
and digital equipment and supplies within the total $6 billion industry
channel. Representing more than 400 manufacturing, distribution, and related
firms, NAGASA is dedicated to developing a sound and growing business
environment for its membership and advancing a channel of value-added,
quality products and services for channel customers.
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