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Benchmarking Surveys: Operating Ratio & Profitability Survey
Date: June 1, 2012

 

Operating Ratio & Profitability Survey


Report Dates:

2010, 2008, 2006, 2005, 2001, 1998, 1996, 1992, 1991, 1990, 1989, 1986, 1985

 

Purpose:

AMC Institute surveys member and non-member association management companies to develop benchmarks for company financial and operating performance. Results profiled in this report are based on income statement, balance sheet, and operating data provided by participating companies.

Highlights from 2008 Report: (based on 2007 data)

 

Financial performance varied widely within the industry in 2007. The results show that the typical firm had sales of $1,318,927 and a pre-tax profit of 4.7 percent. High-profit firms had sales of $728,905, and profit of 16.0 percent. Of greatest consequence, the typical firm had a pre-tax return on assets (profit before taxes expressed as a percentage of total assets) of 32.9 percent. For the high profit firm return on assets was 176.0 percent.

 

A number of factors led to the differences in results. In most instances these differences can best be illustrated by what are commonly called the critical profit variables (CPVs). High profit firms seldom perform better in all the CPVs. Instead, it is the sum-total of their CPV performance that produces better overall results. Since these differences can dramatically improve operating performance it is important that every firm is aware of their impact. The following exhibit presents the results for the typical firm compared with the results for high profit firms.

 

An Overview of Financial Results

Typical AMC High Profit AMC
Income Statement
Total Revenue $1,318,927 $728,905
Total SG&A Expenses 1,255,618 612,280
Operating Profit 63,309 116,625
Other Income/Expenses -1,319 0
Profit Before Taxes $61,990 $116,625
Assets
Cash & Marketable Securities $66,512 $33,265
Accounts Receivable 38,664 8,986
All Other Assets 83,242 24,013
Total Assets $188,418 $66,264
Return on Assets 32.9% 176.0%

 

Downloadable Resources

Download FREE 2008 Results (PDF)(filesize 148.8 KB)

Order 2010 Results (PDF)(filesize 90.01 KB)

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