For the first time in several years, profitability is on the rise. However, profit improvements are not being enjoyed in equal proportion by all firms.  As a result, firms are splitting into two distinct categories:

• Business as Usual—For most firms, profits are improving steadily, but at an agonizingly slow pace.  Most of the concerns of the recession have been eliminated, but the benefits of the recovery are modest.

• Top Profit Producers—The upper-tier of firms that are experiencing some of the best profit results in their history. 

One of the key characteristics of top profit producers is that they have implemented a plan for ensuring the success of their firm.  That plan is based upon specific profitability benchmarks. AVDA can help supply you with the benchmarks needed to be a top profit producer through the 2006 AVDA PROFIT Survey Report.

The report will not only present a profile for the typical firm in the industry, but it will also outline the results obtained by the most successful ones. It will help identify a path for improving every firm’s bottom line.

Each participant in the AVDA PROFIT Survey will receive a copy of the overall industry results as well as two important tools to help in improving the firm’s profitability. The first is a printed report comparing the firm to the specific benchmarks generated by the survey. The second is a computer-based financial analysis program. Both of these tools help management delve into the ways their firm’s financial performance can be strengthened over time.

The Profit Improvement Profile

Every participating firm receives the individual company report comparing their firm's results to similar firms.  Such comparable firms may include those with the same sales size, in the same geographic region, or with the same product mix.  This report, called the Profit Improvement Profile (PIP), also indicates how the firm compares to the industry's most profitable companies.

The PIP provides data for more than 100 different measures, ranging from sales per employee to the average collection period to gross margin as a percent of sales.  The report also includes all key financial ratios, and a complete percentage income statement and balance sheet.

In addition, each of the key measures is accompanied by a thorough discussion explaining why it's important to the business.  In short, the PIP provides a detailed analysis of where the firm stands financially.  The firms that have used the PIP for a period of years find it to be an invaluable service.