High-profit distribution firms had twice the pretax profit margin in 2011 than that of the typical firm, according to the 2012 PT Distributor Performance Report. The annual report, conducted for the Power Transmission Distributors Association by Profit Planning Group of Boulder, CO, is a compilation of operational statistics from distribution firms throughout North America.
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High-profit power transmission distribution firms had sales of $35.8 million in 2011and a pretax profit of 6.8 percent, compared with a pretax profit of 3.4 percent for typical power transmission distribution firms, according to the report.
The report provides operational, financial and productivity ratios for use in benchmarking company performance to that of typical and high-profit firms within the power transmission/motion control (PT/MC) industry.
The report was compiled from data provided by participating PTDA distributor member companies and examines distributor performance trends in several categories including return on investment (ROI), income statement and balance sheet line items, financial ratios, asset productivity ratios, growth and cash sufficiency ratios, and employee productivity ratios. A five-year trend analysis in the report for selected key ratios helps identify historical performance in order to consider their impact for the future.
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