PRESS
RELEASES
NAGASA RELEASES 1997 FINANCIAL
RATIO STUDY
Washington, DC, July 1997 - 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 suppliers and equipment. David J. Steinhardt, NAGASA President/CEO, announced the completion of the study, the twelfth in an annual series. The survey was conducted and the data analyzed by Donlin & Stevens, a CPA firm in Highland Heights, Kentucky.
The NAGASA 1997 Financial Ratios Study contains data from 50 graphic arts dealers and value added resellers who reported on operations in 1996. Dealers responding to the NAGASA survey reported total 1996 sales of nearly $1 billion, average sales of more than $21 million, and pretax profits of $29 million. Responding dealers reported average gross margins of 18.17 percent, an increase from the 18.03 percent reported in 1995. Pretax profits of the reporting dealers increased to 2.21 percent, from the 1.46 percent reported one year earlier. Dealers also reduced their debt overall, from 1.61 times net worth in 1995 to 1.24 in 1996.
Dealers with sales exceeding $10 million increased their gross margins from 16.83 percent in 1995 to 17.43 percent in 1996, while those with sales of less than $10 million saw gross margins hold essentially steady from 22.04 percent in 1995 to 22.72 percent in 1996. Gross margins at equipment dealers declined from 27.42 percent in 1995 to 25.43 percent in 1996.
Commenting on the results of the 1996 NAGASA Financial Ratios Survey, NAGASA Board Chair John M. Alley said: "Despite consolidations which have reduced the actual numbers of dealers, the continued success and profitability of the channel demonstrates the valuable role played by graphic arts dealers and value added resellers in the North American printing industry."
The NAGASA 1997 Financial Ratios Survey is available from NAGASA at 202-328-8441. The study is priced at $425 for members and $745 for nonmembers.
NAGASA - the North American Graphic Arts Suppliers Association - is the world's largest trade association of dealers, resellers, distributors, and manufacturers serving the graphic arts, imaging and publishing industries. NAGASA members sell more than $4 billion of equipment, supplies, systems, software, paper and service annually. NAGASA is dedicated to strengthening distribution channel alliances, streaming costs and operations, and improving the business performance of its more than 350 members. NAGASA: The Distribution Association for Printing and Imaging Technologies.