A/E Financial Performance Shows Increase in Operating Profit

According to PSMJ Resources, Inc. A/E Financial Performance Shows Increase in Operating Profit, as of 2005:

• Operating profits (before incentive/bonuses and taxes) as a percentage of net revenues improved significantly by 27% above the 2004 results and achieved a 12.30% performance margin.
• The net multiplier improved to 2.97, reaching a new all-time high.
• Utilization (chargeability) remains constant at approximately 60%, down from a peak of 62.6%.
• The current ratio (including deferred taxes) is trending lower to 1.72, indicating that firms with improved profits are not making attempts at strengthening their balance sheets. Compared to other industries, these ratios remain very low.
• Accounts receivable and work-in-process measurements continue to reflect poor billing and collection techniques (68 and 26 days, respectively).

For more information: http://www.psmj.com