Premium Commentary & Analysis
The PIA Financial Ratios have been published for decades, and may be the most recognized of the association's publications. There are, of course, problems with all kinds of research gathering efforts, but the positives of the Ratios reports outweigh the negatives from a methodological standpoint.
Our mission is to provide cogent commentary and analysis about trends, technologies, operations, and events in all the markets that comprise today’s printing industry. Support our mission and read articles like this with a Premium Membership.
TO READ THE FULL ARTICLE
About Dr. Joe Webb
Dr. Joe Webb is one of the graphic arts industry's best-known consultants, forecasters, and commentators. He is the director of WhatTheyThink's Economics and Research Center.
© 2024 WhatTheyThink. All Rights Reserved.
Discussion
By Terry Tevis on Oct 05, 2015
Joe:
Is profit here actual Net Income after Taxes or is it EBITDA, the basis of any merger or sale price multiple? A company with great income and tired iron will not fetch the same value as one with a great equipment/software and superior value chain footprint. Even with a profit % below that of the "tired iron" or "tired valued proposition" printer, TTM and the printer's potential will carry the day for customers and investors.
Terry
By Joe Polanco on Oct 09, 2015
Joe, as you mention, there are statistical "challenges" to be found in the studies. It's been my observation over the years that a SIGNIFICANT percentage of the companies in the survey are religious about their participation -- thus you will see the ebb and flow of market cycles reflected in the study. It's not perfect, but it's a great bench-marking tool.
As to Terry's question, the income reported is Net Earnings before Taxes.
Joe Polanco
PIA MidAmerica