Report provides distributors with industry financial benchmarks
St. Louis, MO - The National Association of Electrical Distributors (NAED) released its annual Performance Analysis Report (PAR) Highlights, which compiles performance data from NAED electrical distributors to provide a benchmark for distributor operations in the industry.
Featuring statistical breakouts by sales volume, customer emphasis, and warehouse sales, the 2013 NAED PAR Highlights profiles the “typical” and “high profit” NAED distributor as well as provides in-depth reporting on investment, income statement, balance sheet, and financial and productivity ratios. Other measures covered in the report include:
- inventory turnover
- sales per employee
- average collection period
- return on assets
- five-year trend analysis of key financial ratios
The report shows that electrical distributor profit margins increased to a median of 3.3 percent in 2012, up slightly when compared to the 2011 medians of 3 percent. Among the top performing “high profit” distributors, the 2012 profit margin was 6.3 percent, consistent with last year’s profit margin.
The report’s author, Dr. Al Bates of Profit Planning Group in Boulder, Colo., offered insight into this year’s results. “This study provides key insights into exactly how the high profit firm generates those better profit numbers. It is essential that every firm understand that the key is to do a few things a little better. This report provides clear evidence as to how small differences in a few areas translate directly into higher levels of profitability.”
Results from the 2013 survey are based on data from NAED-member electrical distributors. The typical distributor surveyed, based on median figures, had annual sales of $70.7 million and achieved a gross margin of 21.6 percent in 2012. Inventory turnover was 4.3; payroll expenses were 13.1% of sales.
PAR survey participants receive a free copy of the PAR Highlights. The report is now available to NAED member non-participants for $300 (first copy) and $20 (additional copies), as well as non-members for $495 (each copy). For more information about PAR Highlights, contact NAED Member Services at (888) 791-2512 or firstname.lastname@example.org. Survey forms for the next Performance Analysis Report will be distributed in January 2014. At that time, participating NAED members may also opt for purchasing customized reports for their firms.
The NAED is the trade association for the $70+ billion electrical distribution industry. Through networking, education, research, and benchmarking, NAED helps electrical distributors increase profitability and improve the channel. NAED’s membership operates in approximately 4,400 locations internationally.