PRESS
RELEASES
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.