Collection Agency Financial Benchmark Report: 2015

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Note:  All data is aggregated within categories listed above. There is no specifically identifiable data on any individual firm.

Is your EBITDA in line with other collection agencies of the same size? How about the percentage of revenue spent on salaries?

This report, compiled in partnership with Bizminer, will help you to benchmark your financial performance against your peers and competitors.

The 2015 report is fully updated to include five years' worth of data through December 31, 2014, in addition to historical data since 2010. Information is drawn from NAICS classification code 561440 and is aggregated from 2,813 collection agencies, across eight size categories with revenues ranging from under $500,000 to $50-$100 million. The report contains 30 graphs showing how key metrics differ across agencies of different size, and over time. Additionally: the Benchmark Report includes the P&L line item “Discretionary Owner Earnings,” which is the sum [Officers Comp] + [PreTax Net Profit] + [Amort-Deprec].

More financial analytics at your fingertips:

• Income and Expense - Profit and Loss (by both $ and %)
• Balance Sheet (by both $ and %)
• Financial Ratios: Cash Flow-Solvency
• Financial Ratios: Profitability
• Financial Ratios: Efficiency-Debt-Risk
• Financial Ratios: Turnover
• Sources & Uses of Funds

Here's What's in the Table of Contents

You'll Get the Following Financial Analysis Profile Data For Each Size Category

Note:  All data is aggregated within categories listed above. There is no specifically identifiable data on any individual firm.

Income and Expense - Profit and Loss (by both $ and %)

• Business Revenue 
• Cost of Sales
• Gross Margin
• Officers Comp
• Salary-Wages
• Rent
• Taxes Paid
• Advertising
• Benefits-Pensions
• Repairs
• Bad Debt
• Other SG&A Exp.
• EBITDA
• Amort-Deprec-Depl
• Operating Expenses
• Operating Income
• Interest Income
• Interest Expense
• Other Income
• Pre-Tax Net Profit
• Income Tax
• After Tax Net Profit
• Discretionary Owner Earnings

Balance Sheet (by $ and %)

Assets

• Cash
• Receivables
• Inventory
• Other Current Assets
• Total Current Assets
• Net Fixed Assets
• Other Non-Current Assets

Liabilities

• Accounts Payable
• Loans/Notes Payable
• Other Current Liabilities
• Total Current Liabilities
• Total Long Term Liabilities
• Net Worth

Financial Ratios: Cash Flow-Solvency

• Accounts Payable: Business Revenue (%)
• Current Liabilities: Inventory
• Current Liabilities: Net Worth
• Current Ratio
• Days Payable
• Quick Ratio
• Total Liabilities: Net Worth

Financial Ratios: Profitability

• EBITDA: Business Revenue (%)
• Pre-Tax Return on Assets (%)
• Pre-Tax Return on Net Worth (%)
• Pre-Tax Return on Business Revenue (%)
• After Tax Return on Assets (%)
• After Tax Return on Net Worth (%)
• After Tax Return on Business Revenue (%)
• Discretionary Owner Earnings

Financial Ratios: Efficiency-Debt-Risk

• Assets: Business Revenue
• Cost of Sales: Accounts Payable
• Cost of Sales: Inventory
• Days Inventory
• Days Receivables
• Days Working Capital
• EBITDA: Interest Expense
• Fixed Assets: Net Worth
• Gross Margin: Business Revenue
• Net Working Capital: Business Revenue

Financial Ratios: Turnover

• Cash Turnover 
• Current Asset Turnover
• Fixed Asset Turnover
• Inventory Turnover 
• Receivables Turnover 
• Total Asset Turnover
• Working Capital Turnover 

Sources & Uses of Funds

• Cash & Cash Equivalents
• Accounts Receivable
• Inventory
• Other Current Assets
• Net Fixed Assets
• Other Non-Current Assets
• Acounts Payable
• Loans/Notes Payable
• Other Current Liabilities
• Long-term Debt
• Net Worth

Fixed Asset Detail

• Gross Fixed Assets
• Accumulated Deprec-Amort-Depl
• Net Fixed Assets
• Gross Fixed Assets
• Acumulated Deprec-Amort-Depl
• Net Fixed Assets

Financial Ratios: Efficiency-Debt-Risk

• Loans/Notes Payable: Net Worth
• Long-Term Liabilities: Net Worth

Cost of Sales - Labor Portion ($)
Cost of Sales - Labor Portion (%)

You simply won't find this level of detail based on data from this many collection agencies anywhere else!

Data Gathered From Numerous Government & Private Sources

BizMiner was able to obtain at least some data from 2,813 corporate firms in the collection industry. They do not have complete financial statements from all firms but use a number of full statements, and pieces of other statements to develop their financial profiles. They obtain information from a variety of private sources, including business directories and credit reporting agencies, as listed in their resources section at http://www.bizminer.com/resources/technical/our-data.php.

Raw data analyzed for BizMiner reports is sourced from an array of the nation's government and private statistical sources. None of these raw data sources creates the final measures reflected in BizMiner industry profiles. In total, BizMiner accesses over a billion sourced data points from eighteen million business operations for each of its twice annual updates covering a 3-5 year time series. Historical data and BizMiner algorithms are used to inform and test projections for non-reporting firms.

Data elements are sourced specifically from:

• IRS SOI Corporation Income Tax Returns
• IRS SOI Corporation Tax Book
• IRS SOI 1040 Schedule C Income Tax Returns
• IRS SOI Statistics of Income- Individual Tax Statistics
• US Economic Census of Manufactures
• US Census Economy Overview
• US Census Annual Survey of Manufactures
• US Census Annual Retail Trade Survey
• US Census Annual Wholesale Trade Survey
• US Census Quarterly Financial Reports
• US Census County Business Patterns
• Bureau of Labor Statistics Monthly Employment Reports
• Bureau of Labor Statistics Monthly Unemployment Reports
• US Census Wholesale Trade Report
• US Census Quarterly (New Housing) Sales by Price and Financing
• US Census Total Construction Spending
• US Census Retail Trade Report
• US Census Quarterly Services Survey
• Commercial Real Estate Survey
• Credit Reporting Agencies
• Business Directories  

While 100% firm coverage is desirable for analysis purposes, the greatest value of BizMiner reports rests in discerning patterns of activity, which are reflected in the large samples used to develop our reports.

The overall current coverage of the databases surpasses 13 million active business operations at any point in time. As is the case with any databases this large, some errors are inevitable. Some firms are missed and specific information on others is lacking from the database. Not all information received is uniform or complete, resulting in the need to develop projection algorithms for specific industry segments and metrics in some report series.

No representation is made as to the accuracy of the databases utilized or the results of subsequent analyses. Neither the Brandow Company nor its resellers has undertaken independent primary research to confirm the accuracy of the data utilized in the Profile analyses. Neither the Brandow Company nor its resellers are responsible for conclusions drawn or decisions made based upon this data or analysis. In no event will the Brandow Company or its resellers be liable for any damages, direct, indirect, incidental or consequential resulting from the use of the information contained in BizMiner reports.