About Moss Adams
Moss Adams is a national leader in assurance, tax, and consulting, serving a growing roster of construction industry clients, from large general contractors to specialty contractors. They provide the strategic business and financial planning, tax, and operational expertise clients need to stay competitive.
Benchmark Your Company’s Performance with Industry Data and More In-Depth Ratio Analysis
By Elaine Ervin, Partner, Moss Adams LLP
What do your numbers communicate to your lenders and stakeholders? What trends affect your business, both regionally and nationally?
These are important questions that require accurate data to help formulate answers. One tool that might guide those answers: an annual Construction Industry Financial Analysis Survey Report.
Every year, we examine the financial statements of contractors up and down the West Coast alongside national data provided by the Construction Financial Management Association, known as the CFMA, to produce a benchmarking report with the insights you need to push your business forward. For our 2016 report, we gathered key financial data from more than 140 construction businesses of all sizes and types—from specialty trade contractors with less than $10 million in revenue to large-scale commercial contractors with more than $100 million. The report covers current ratios, debt to equity, gross profit, months in backlog, and more.
Ratios in particular can be valuable to take a closer look at. It’s possible to take a deeper dive with these numbers to see how yours compare with the industry in general. This can help identify areas for improvement as well as pinpoint what you’re doing well.
The good news: The general conclusion from our survey is that the construction industry has remained relatively stable year over year. Backlogs and profit margins remained high in 2016, and given the volume of work already committed, it may be some time before we feel the effects of an economic downtrend. The major pain point remains finding talented people.
We’re Here to Help
Our consultants can walk you through our 2016 report and provide more customized analysis with a ratio report. Comparing your company’s financial data with the latest survey results, we’ll examine your ratios against the industry’s so you can better plan future improvements to your business.
For more information on our construction practice and the services we provide, visit www.mossadams.com/construction. You can download a complimentary copy of the 2016 Construction Industry Financial Analysis Survey Report at www.mossadams.com/industries/construction/surveys.
Elaine Ervin is the national practice leader of the Construction Practice at Moss Adams. In public accounting since 1986, she provides accounting and business advisory services to closely held businesses with a focus on the construction and real estate industries. Elaine can be reached at (206) 302-6399 or firstname.lastname@example.org.