Complete Story
07/13/2016
Dynamic Ratio Studies - New Deadline is July 31st.
Printing Industries of America’s Center for Print Economics and Management Announces New, Easy-to-Use Financial Benchmarking Tool—the Dynamic Ratios
Take steps now to participate in the study before the July 31st deadline!
If you’ve ever been curious to see how your firm stacks up against similar businesses, the Printing Industries of America Ratios studies are a tried-and-true resource for comparing similar printers and helping companies determine what parts of their operation are most in need of a tune-up.
The Ratios have long been a compilation of accurate financial information from hundreds of printing and related graphic arts firms. They can be a valuable financial benchmarking tool and include information about assets, liabilities, working capital, salaries, sales, and profits.
In cooperation with Margolis Partners, LLC, PIA’s Center for Print Economics and Management is thrilled to announce the new financial benchmarking tool, the Dynamic Ratios.
In addition to the look-under-the-hood financial details we have provided for 94 years, the new Dynamic Ratios provide an online, interactive version of our Ratios study.
According to PIA’s Senior Vice President and Chief Economist Dr. Ron Davis, “the Dynamic Ratios combine the reliability, confidentiality, and detailed reports of the legacy system with a new streamlined data collection process, an interactive dashboard, and new key performance metrics analysis allowing members instant analysis of their strengths and weaknesses.”
The central features of the new Dynamic Ratios include:
New Shorter Survey Option: While we will still offer members the option to fill out the traditional 114-line survey, we are now offering a condensed version. This new shorter version offers a 70% reduction in required information. Now printers need only provide 32 line items to participate.
New Secure Interactive Dashboard: Printers will have instant access from any device to industry financial and operating averages and profit-leader benchmarks. Access to this information will be available 24/7.
New Peer Group Report: The online tool will allow members to create customized peer group reports—by printing processes, products and market segments, firm size, and other variables. In addition, printers will have the option to choose which printers they would like to sync with. The online dashboard will also show this information 24/7. It is recommended that those printing companies that are looking to sync up fill out the longer survey form in order to get the most out of the new Dynamic Ratios.
New Instant Graphics: These will provide easy-to-understand information. The new quartile graphics allow every company to see graphically their company’s status compared to their peer group or to the industry financial and operating averages.
New Focus on Key Performance Metrics: This will help printers simplify management decisions. For example, we will now focus on items such as gross profit as a percentage of sales, sales per employee, value added per factory employee, and other important variables.
Legacy Reports and Database: Printers will still have access to the traditional reports (PDF or printed) and will be able to receive them if they so choose.
A Web-Based Survey: In the past we have also used this as a collection process. There will be a new focus this year on the online portion. However, we will still have Excel versions and PDF versions of the short and long forms that can be downloaded and filled out.
Trend Analysis between Years: For every year that a printer participated in the survey in the past, you will be able to receive a trend analysis via graphics. If you have ever been curious as to how your firm does from year to year in one metric, especially after implementing new changes, we can provide you with the graphics needed to easily understand if the direction your company has taken has made a difference.
The new Dynamic Ratios program will be implemented with the 2016 Ratios survey cycle. Members received the survey materials in May and the survey process will be open until July 31. Margolis Partners CPA firm will continue as a strategic partner for the Dynamic Ratios and ensure data integrity, confidentiality, analysis, and report preparation.
Choosing to participate in the new Dynamic Ratios can lead to the possibility for greater sales and profit growth. Even if the Dynamic Ratios allow you to increase in profits by a minimum of 1%, this equates to $10,000 for a $1-million-per-year printer.
Financial benchmarking through use of the Dynamic Ratios provides YOU with the business intelligence needed to make YOUR business more profitable.
Contact your BDD or the Association office for more information.
