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Typical and high profit PT/MC distributors differentiated themselves in terms of sales volume in 2002. While typical PTDA distributors experienced a decline of 1.9 percent in 2002, high profit distributors reported a 2.1% gain in sales growth.
High-profit firms reported a pre-tax return on assets (ROA) of 9.3 percent, while the typical PT/MC distributor reported ROA of only 1.6 percent.
As documented in the report, high profit firms seldom perform better on all critical profit variables (CPVs). Instead, the sum of their performance on these CPVs ' sales per employee, gross margin percentage, operating expense percentage, inventory turnover, average collection period ' produces higher overall results.
High profit firms generally have larger sales volumes than typical firms. Combined with superior performance on many critical profit variables, the result is improved operating performance. Total operating expenses as a percent of net sales was 23.3 percent for high-profit firms, compared to 25.6% for typical firms.
The PT Distributor Performance Report is a compilation of operational statistics from 56 PTDA members throughout North America. This valuable resource examines five-year distributor performance trends in return on investment, income statement, gross margin-related expenses, balance sheet, financial ratios, asset productivity ratios, growth and cash sufficiency ratios, operations profile and employee productivity ratios.