Editable Comments (/750)

SUMMARY PERFORMANCE SCORES

Based on your inputs, the Industry Financial Report calculates the percentage difference (variance) between client ratios and the industry average for the selected industry peer group. Your firm performance on each ratio is scored on a 1-5 scale (5 being best) for each year displayed in the report. The scoring approach depends on the specific scored ratio. You can find a detailed explanation for each at the end of this report.

The value of peer comparisons with your business depends on the accuracy and completeness of the firm financial information that is being entered. The more detail that you provide, the more comprehensive and meaningful the benchmark.

For each ratio, the score for those years selected from the most recent three calendar years is averaged and integrated into a Ratio Category Score. The Score for each of the four categories (Cash Flow/Solvency; Profitability; Efficiency; Debt-Risk) are then averaged to produce an Overall Score.

Summary Scores (2017-2018) (Scale 1-5)

OVERALL TOTAL SCORE:
3.03
RATIO CATEGORY SCORES
CASH FLOW/ SOLVENCY:
2.25
PROFITABILITY:
3.70
EFFICIENCY:
3.75
DEBT-RISK:
2.40

RATIO CATEGORIES

The Bizminer Industry Financial Report is based on selected financial ratios that are typically considered to be Key Performance Indicators (KPIs) which includes:

Cash Flow/Solvency: Cash Flow ratios indicate a company’s ability to meet various levels of demand on cash and easily obtainable cash resources against current and anticipated near-term payments due.

Profitability: Profitability ratios compare levels of return against various expense and balance sheet components to measure your performance against reasonable industry peer group standards, indicating bottom line performance,

Efficiency: Efficiency ratios measure your success in marshalling resources at hand to effectively manage various components of your business operations. These indicators often point most specifically toward actions that could enhance your bottom line.

Debt-Risk: Debt-Risk ratios assess the appropriateness of a firm’s level of debt against the ability to pay, as well as the risk of insolvency.


WORTH YOUR FOCUS:

Ratio Category scores are simply a reflection of the more focused individual ratios that they include. Any ratios that score below 3.0 should be examined closely for weaknesses in management or performance that could be improved with reasonable effort and expense. While you should work with a qualified advisor to obtain specific guidance, we’ve flagged these areas for attention:

Red flag image Long-Term Liabilities: Net Worth 1.00

GET THE MOST OUT OF YOUR INDUSTRY FINANCIAL REPORT

This special summary version of Bizminer's industry Financial report is tailored to small business owners. It displays the same values as our complete Industry Financial series but with more limited years and line items.

The Bizminer Industry Financial Report presents detailed information to help you understand any firm’s position relative to the financial performance of similar firms in the industry. If you input your firm financials, comparison of dollar, percentage and financial ratio performance become an even more powerful benchmark of firm performance against industry standards. The results can help you understand your industry and become an important part of your toolkit that helps to guide management decisions. If you aren’t already, consider working with a qualified advisor to obtain personalized guidance.

To assist you, the report includes definitions of most line items and ratios; and (if you take advantage of the inputs tool) a simple scoring interface that compares your firm and the industry peer group you selected.


YOUR INDUSTRY PEER GROUP

When you accessed your Industry Financial Report, you selected a comparison peer group that most closely represents the character of your firm.

Firms Analyzed
2017 15,946
2018 16,222
2019 20,278

Your peers are determined through a series of criteria and can include your selections of:

  • Industry Segment (of 5000 classifications)
  • Market Area (US- State-Metro)
  • Sales Class (of 15 available)
  • Time Series (1-5 year display options)

YOUR INDUSTRY IN CONTEXT: THE NAICS CLASSIFICATION SYSTEM

The industry your selected fits within the official NAICS (North American Industry Classification System) and Bizminer’s proprietary taxonomy, which breaks out more detailed industries classifications than NAICS by adding up to eight decimal digits after the NAICS-6 code. The industry you selected fits into this industry hierarchy:

- NAICS 23: Construction
- NAICS 238: Specialty Trade Contractors
- NAICS 2382: Building Equipment Contractors
- NAICS 238220: Plumbing, Heating, and Air-Conditioning Contractors

RATIO CATEGORIES

The Bizminer Industry Financial Report is based on selected financial ratios that are typically considered to be Key Performance Indicators (KPIs) which includes:

Cash Flow/Solvency: Cash Flow ratios indicate a company’s ability to meet various levels of demand on cash and easily obtainable cash resources against current and anticipated near-term payments due.

Profitability: Profitability ratios compare levels of return against various expense and balance sheet components to measure your performance against reasonable industry peer group standards, indicating bottom line performance,

Efficiency: Efficiency ratios measure your success in marshalling resources at hand to effectively manage various components of your business operations. These indicators often point most specifically toward actions that could enhance your bottom line.

Debt-Risk: Debt-Risk ratios assess the appropriateness of a firm’s level of debt against the ability to pay, as well as the risk of insolvency.

If you submit corresponding inputs, ratios will be scored against industry values for the most recent three calendar years.


CUSTOMIZE YOUR REPORT

Customize any Bizminer Industry Financial Report with these options: Co-brand with your name and logo (and/or your client’s); input and benchmark firm financials; specify tables, ratios and years you want to display. Display options are On by default.

Inputs are not required; however, inputting the requested metrics will result in a more robust report. We do not use, access, sell or distribute any data you might input.

Configure Display

Scored ratios shown below in blue. Check All Uncheck All
Company Display (optional)
Developer Name:
Developer Phone:
Developer Email:
Developer Logo:

(maximum dimensions of 800px x 800px): PNG, JEG, JEPG, GIF)

Company Name:
Company Logo: Client logo image

(maximum dimensions of 800px x 800px): PNG, JEG, JEPG, GIF)

Input Firm Benchmark Data

Data Input Upload:

  1. Download the BizMiner Industry Financial Input 3-year Template and save it offline as a CSV file.
  2. Populate the template offline.
  3. Select the Choose File or Browse button to find the populated CSV file on your device.
  4. Use the Upload Inputs button to complete the process.
  5. Generate the report. Your financials will be integrated; percentages, summary line items and ratios will auto-calculate.

Manual Inputs:

* Please do not use periods, dollar signs, or characters. Commas are automatically added.
Income Statement
2017
2018
2019
Business Revenue *(Required)
Gross Margin *(Required)
Owner Compensation
Operating Expenses
Amortization Depreciation Depletion
Interest Income
Interest Expense
Other Income
Balance Sheet
2017
2018
2019
Assets
Cash
Receivables
Inventory
Total Current Assets
Other Non-Current Assets
Liabilities
Total Current Liabilities
Total Long Term Liabilities
Other
2017
2018
2019
FTE Employees
Avg. Annual Wage
Editable Comments (/750)

Income & Expense-Profit & Loss ($)

Industry
  2017 2018 2019
Business Revenue 1,840,458 1,885,795 1,469,930
Cost of Sales 1,045,748 1,063,777 823,161
Gross Margin 794,710 822,018 646,769
EBITDA 122,575 141,435 134,499
Amortization Depreciation Depletion 23,006 23,384 21,608
Operating Expenses 695,141 703,967 533,878
Operating Income 99,569 118,051 112,891
Interest Income 368 377 294
Interest Expense 7,178 7,355 6,762
Other Income 4,601 5,092 4,851
Pre-Tax Net Profit 97,360 116,165 111,274
Discretionary Owner Earnings 236,128 253,949 224,587

Income & Expense-Profit & Loss ($)

Foundation Plumbing
  2017 2018 2019
Business Revenue 1,749,451 1,612,441 1,599,085
Cost of Sales 1,007,072 928,251 1,007,518
Gross Margin 742,379 684,190 591,567
EBITDA 124,080 126,000 127,655
Amortization Depreciation Depletion 20,652 24,189 14,160
Operating Expenses 638,951 582,379 478,072
Operating Income 103,428 101,811 113,495
Interest Income 591 565 529
Interest Expense 7,401 6,902 5,728
Other Income 4,824 8,956 3,740
Pre-Tax Net Profit 101,442 104,430 112,036
Discretionary Owner Earnings 238,185 226,953 206,857
Editable Comments (/750)
Industry Expenses: Sales 2019

Foundation Plumbing Expenses: Sales 2019

Industry Owner Earnings: Sales 2019

Foundation Plumbing Owner Earnings: Sales 2019

Editable Comments (/750)

Variance from Industry

  2017 2018 2019
Business Revenue -4.94% -14.50% 8.79%
Cost of Sales -3.70% -12.74% 22.40%
Gross Margin -6.58% -16.77% -8.54%
EBITDA 1.23% -10.91% -5.09%
Amortization Depreciation Depletion -10.23% 3.44% -34.47%
Operating Expenses -8.08% -17.27% -10.45%
Operating Income 3.88% -13.76% 0.54%
Interest Income 60.60% 49.87% 79.93%
Interest Expense 3.11% -6.16% -15.29%
Other Income 4.85% 75.88% -22.90%
Pre-Tax Net Profit 4.19% -10.10% 0.68%
Discretionary Owner Earnings 0.87% -10.63% -7.89%
Editable Comments (/750)

Income & Expense-Profit & Loss (%)

Industry
  2017 2018 2019
Business Revenue 100% 100% 100%
Cost of Sales 56.82% 56.41% 56.00%
Gross Margin 43.18% 43.59% 44.00%
EBITDA 6.66% 7.50% 9.15%
Amortization Depreciation Depletion 1.25% 1.24% 1.47%
Operating Expenses 37.77% 37.33% 36.32%
Operating Income 5.41% 6.26% 7.68%
Interest Income 0.02% 0.02% 0.02%
Interest Expense 0.39% 0.39% 0.46%
Other Income 0.25% 0.27% 0.33%
Pre-Tax Net Profit 5.29% 6.16% 7.57%
Discretionary Owner Earnings 12.83% 13.47% 15.28%

Income & Expense-Profit & Loss (%)

Foundation Plumbing
  2017 2018 2019
Business Revenue 100% 100% 100%
Cost of Sales 57.57% 57.57% 63.01%
Gross Margin 42.43% 42.43% 36.99%
EBITDA 7.09% 7.81% 7.98%
Amortization Depreciation Depletion 1.18% 1.50% 0.89%
Operating Expenses 36.52% 36.12% 29.90%
Operating Income 5.91% 6.31% 7.10%
Interest Income 0.03% 0.04% 0.03%
Interest Expense 0.42% 0.43% 0.36%
Other Income 0.28% 0.56% 0.23%
Pre-Tax Net Profit 5.80% 6.48% 7.01%
Discretionary Owner Earnings 13.61% 14.08% 12.94%
Editable Comments (/750)
Industry Owner Earnings: Sales 2019

Foundation Plumbing Owner Earnings: Sales 2019

Editable Comments (/750)

Variance from Industry

  2017 2018 2019
Business Revenue 0.00% 0.00% 0.00%
Cost of Sales 1.32% 2.06% 12.52%
Gross Margin -1.74% -2.66% -15.93%
EBITDA 6.46% 4.13% -12.79%
Amortization Depreciation Depletion -5.60% 20.97% -39.46%
Operating Expenses -3.31% -3.24% -17.68%
Operating Income 9.24% 0.80% -7.55%
Interest Income 50.00% 100.00% 50.00%
Interest Expense 7.69% 10.26% -21.74%
Other Income 12.00% 107.41% -30.30%
Pre-Tax Net Profit 9.64% 5.19% -7.40%
Discretionary Owner Earnings 6.08% 4.53% -15.31%
Editable Comments (/750)

Balance Sheet ($)

Industry
  2017 2018 2019
Cash 117,786 121,468 102,013
Receivables 135,495 139,734 120,649
Inventory 31,702 32,675 28,854
Total Current Assets 300,762 310,141 265,671
Other Non-Current Assets 69,223 67,929 55,026
Total Assets 482,534 488,411 418,774
Total Current Liabilities 153,784 154,827 132,793
Total Long Term Liabilities 92,839 84,788 73,914
Total Liabilities 246,623 239,615 206,707
Net Worth 235,911 248,796 212,067
Total Liabilities & Net Worth 482,534 488,411 418,774

Balance Sheet ($)

Foundation Plumbing
  2017 2018 2019
Cash 107,535 85,349 89,801
Receivables 125,244 96,277 99,257
Inventory 32,955 23,224 24,285
Total Current Assets 282,766 216,496 224,130
Other Non-Current Assets 58,972 44,198 43,856
Total Assets 444,036 343,598 353,863
Total Current Liabilities 151,828 118,480 120,146
Total Long Term Liabilities 93,491 76,001 79,830
Total Liabilities 245,319 194,481 199,976
Net Worth 198,717 149,117 153,887
Total Liabilities & Net Worth 444,036 343,598 353,863
Editable Comments (/750)
Industry Assets 2019

Foundation Plumbing Assets 2019

Industry Liabilities 2019

Foundation Plumbing Liabilities 2019

Editable Comments (/750)

Variance from Industry

  2017 2018 2019
Cash -8.70% -29.74% -11.97%
Receivables -7.57% -31.10% -17.73%
Inventory 3.95% -28.92% -15.83%
Total Current Assets -5.98% -30.19% -15.64%
Other Non-Current Assets -14.81% -34.94% -20.30%
Total Assets -7.98% -29.65% -15.50%
Total Current Liabilities -1.27% -23.48% -9.52%
Total Long Term Liabilities 0.70% -10.36% 8.00%
Total Liabilities -0.53% -18.84% -3.26%
Net Worth -15.77% -40.06% -27.43%
Total Liabilities & Net Worth -7.98% -29.65% -15.50%
Editable Comments (/750)

Balance Sheet (%)

Industry
  2017 2018 2019
Cash 24.41% 24.87% 24.36%
Receivables 28.08% 28.61% 28.81%
Inventory 6.57% 6.69% 6.89%
Total Current Assets 62.33% 63.50% 63.44%
Other Non-Current Assets 14.35% 13.91% 13.14%
Total Assets 100.00% 100.00% 100.00%
Total Current Liabilities 31.87% 31.70% 31.71%
Total Long Term Liabilities 19.24% 17.36% 17.65%
Total Liabilities 51.11% 49.06% 49.36%
Net Worth 48.89% 50.94% 50.64%
Total Liabilities & Net Worth 100.00% 100.00% 100.00%

Balance Sheet (%)

Foundation Plumbing
  2017 2018 2019
Cash 24.22% 24.84% 25.38%
Receivables 28.21% 28.02% 28.05%
Inventory 7.42% 6.76% 6.86%
Total Current Assets 63.68% 63.01% 63.34%
Other Non-Current Assets 13.28% 12.86% 12.39%
Total Assets 100.00% 100.00% 100.00%
Total Current Liabilities 34.19% 34.48% 33.95%
Total Long Term Liabilities 21.05% 22.12% 22.56%
Total Liabilities 55.25% 56.60% 56.51%
Net Worth 44.75% 43.40% 43.49%
Total Liabilities & Net Worth 100.00% 100.00% 100.00%
Editable Comments (/750)
Industry Assets 2019

Foundation Plumbing Assets 2019

Industry Liabilities 2019

Foundation Plumbing Liabilities 2019

Editable Comments (/750)

Variance from Industry

  2017 2018 2019
Cash -0.78% -0.12% 4.19%
Receivables 0.46% -2.06% -2.64%
Inventory 12.94% 1.05% -0.44%
Total Current Assets 2.17% -0.77% -0.16%
Other Non-Current Assets -7.46% -7.55% -5.71%
Total Assets 0.00% 0.00% 0.00%
Total Current Liabilities 7.28% 8.77% 7.06%
Total Long Term Liabilities 9.41% 27.42% 27.82%
Total Liabilities 8.10% 15.37% 14.49%
Net Worth -8.47% -14.80% -14.12%
Total Liabilities & Net Worth 0.00% 0.00% 0.00%
Editable Comments (/750)

Financial Ratios: Cash Flow-Solvency

Industry

  2017 2018 2019
Current Ratio 1.96 2.00 2.00
Current Liabilities: Inventory 4.85 4.74 4.60
Net Working Capital: Business Revenue 0.08 0.08 0.09

Financial Ratios: Cash Flow-Solvency

Foundation Plumbing

  2017 2018 2019
Current Ratio 1.86 1.83 1.87
Current Liabilities: Inventory 4.61 5.10 4.95
Net Working Capital: Business Revenue 0.07 0.06 0.07
Current Ratio

Editable Comments (/750)
Current Liabilities: Inventory

Editable Comments (/750)
Net Working Capital: Business Revenue

Editable Comments (/750)
Editable Comments (/750)

Financial Ratios: Cash Flow-Solvency

Industry

  2017 2018 2019
Current Ratio -5.10% -8.50% -6.50%
Current Liabilities: Inventory -4.95% 7.59% 7.61%
Net Working Capital: Business Revenue -12.50% -25.00% -22.22%
Editable Comments (/750)

Financial Ratios: Profitability

Industry

  2017 2018 2019
EBITDA: Business Revenue (%) 6.66 7.50 9.15
Pre-Tax Return On Assets (%) 20.18 23.78 26.57
Pre-Tax Return on Net Worth (%) 41.27 46.69 52.47
Pre-Tax Return on Business Revenue (%) 5.29 6.16 7.57
Discretionary Owner Earnings 12.83 13.47 15.28
Profit/Employee 10,087 12,275 15,779
Owner Earnings/Employee 24,463 26,834 31,848

Financial Ratios: Profitability

Foundation Plumbing

  2017 2018 2019
EBITDA: Business Revenue (%) 7.09 7.81 7.98
Pre-Tax Return On Assets (%) 22.85 30.39 31.66
Pre-Tax Return on Net Worth (%) 51.05 70.03 72.80
Pre-Tax Return on Business Revenue (%) 5.80 6.48 7.01
Discretionary Owner Earnings 13.61 14.08 12.94
Profit/Employee 10,144 10,443 11,204
Owner Earnings/Employee 23,819 22,695 20,686
EBITDA: Business Revenue (%)

Editable Comments (/750)
Pre-Tax Return On Assets (%)

Editable Comments (/750)
Pre-Tax Return on Net Worth (%)

Editable Comments (/750)
Pre-Tax Return on Business Revenue (%)

Editable Comments (/750)
Discretionary Owner Earnings

Editable Comments (/750)
Editable Comments (/750)

Financial Ratios: Profitability

Industry

  2017 2018 2019
EBITDA: Business Revenue (%) 6.46% 4.13% -12.79%
Pre-Tax Return On Assets (%) 13.23% 27.80% 19.16%
Pre-Tax Return on Net Worth (%) 23.70% 49.99% 38.75%
Pre-Tax Return on Business Revenue (%) 9.64% 5.19% -7.40%
Discretionary Owner Earnings 6.08% 4.53% -15.31%
Profit/Employee 0.57% -14.92% -29.00%
Owner Earnings/Employee -2.63% -15.42% -35.05%
Editable Comments (/750)

Financial Ratios: Efficiency

Industry

  2017 2018 2019
Assets: Business Revenue 0.26 0.26 0.28
Days Inventory 11.07 11.21 12.79
Current Asset Turnover 6.12 6.08 5.53
Gross Margin: Business Revenue 43.18 43.59 44.00
Inventory Turnover 58.05 57.71 50.94
Total Asset Turnover 3.81 3.86 3.51
Working Capital Turnover 12.52 12.14 11.06
Efficiency Index 3.22 3.27 3.30

Financial Ratios: Efficiency

Foundation Plumbing

  2017 2018 2019
Assets: Business Revenue 0.25 0.21 0.22
Days Inventory 11.94 9.13 8.80
Current Asset Turnover 6.19 7.45 7.13
Gross Margin: Business Revenue 42.43 42.43 36.99
Inventory Turnover 53.09 69.43 65.85
Total Asset Turnover 3.94 4.69 4.52
Working Capital Turnover 13.36 16.45 15.38
Efficiency Index 3.26 2.91 3.08
Assets: Business Revenue

Editable Comments (/750)
Days Inventory

Editable Comments (/750)
Current Asset Turnover

Editable Comments (/750)
Gross Margin: Business Revenue

Editable Comments (/750)
Editable Comments (/750)

Financial Ratios: Efficiency

Industry

  2017 2018 2019
Assets: Business Revenue -3.85% -19.23% -21.43%
Days Inventory 7.86% -18.55% -31.20%
Current Asset Turnover 1.14% 22.53% 28.93%
Gross Margin: Business Revenue -1.74% -2.66% -15.93%
Inventory Turnover -8.54% 20.31% 29.27%
Total Asset Turnover 3.41% 21.50% 28.77%
Working Capital Turnover 6.71% 35.50% 39.06%
Efficiency Index 1.12% -11.05% -6.86%
Editable Comments (/750)

Financial Ratios: Debt-Risk

Industry

  2017 2018 2019
Interest Coverage 17.08 19.23 19.89
Current Liabilities: Net Worth 0.65 0.62 0.63
Long-Term Liabilities: Net Worth 0.39 0.34 0.35
Total Liabilities: Net Worth 1.05 0.96 0.97

Financial Ratios: Debt-Risk

Foundation Plumbing

  2017 2018 2019
Interest Coverage 16.77 18.26 22.29
Current Liabilities: Net Worth 0.76 0.79 0.78
Long-Term Liabilities: Net Worth 0.47 0.51 0.52
Total Liabilities: Net Worth 1.23 1.30 1.30
Interest Coverage

Editable Comments (/750)
Current Liabilities: Net Worth

Editable Comments (/750)
Long-Term Liabilities: Net Worth

Editable Comments (/750)
Total Liabilities: Net Worth

Editable Comments (/750)
Editable Comments (/750)

Financial Ratios: Debt-Risk

Industry

  2017 2018 2019
Interest Coverage -1.81% -5.04% 12.07%
Current Liabilities: Net Worth 16.92% 27.42% 23.81%
Long-Term Liabilities: Net Worth 20.51% 50.00% 48.57%
Total Liabilities: Net Worth 17.14% 35.42% 34.02%

About the Data

BizMiner data is widely accepted for industry analytical work, benchmarking, valuations, forensics and litigation. BizMiner content is accepted in US Tax Court (Bauer vs. IRS: T.C. Memo. 2012-156) and is utilized by state, provincial and national taxing agencies in the US and Canada.

Raw data analyzed for BizMiner reports is sourced from an array of the nation's government and private statistical sources. None of these raw data sources creates the final measures reflected in BizMiner industry profiles. In total, BizMiner accesses over a billion sourced data points from 15 million business operations for each of its twice annual updates covering a 3-5 year time series. Historical data and BizMiner algorithms are used to inform and test projections for non-reporting firms. Data elements are sourced specifically from:

  • IRS SOI Corporation Tax Book
  • IRS Statistics of Income
  • US Economic Census
  • US Census Quarterly Financial Reports
  • US Census County Business Patterns
  • Bureau of Labor Statistics Monthly Employment Reports
  • Bureau of Labor Statistics Monthly Unemployment Reports
  • Bureau of Labor Statistics Annual Wage Survey
  • Bureau of Labor Statistics Industry Productivity Reports
  • Bureau of Labor Statistics Price Indices
  • National Agricultural Statistical Service
  • US Census Quarterly Financial Reports
  • US Census Retail Trade Report
  • InfoGroup, Inc.
  • Credit Reporting Agencies
  • Business Directories
  • American Community Survey

While 100% firm coverage is desirable for analysis purposes, the greatest value of BizMiner reports rests in discerning patterns of activity, which are reflected in the large samples used to develop our reports. The overall current coverage of the databases surpasses 13 million active business operations at any point in time.

As is the case with any databases this large, some errors are inevitable. Some firms are missed and specific information on others is lacking from the database. Not all information received is uniform or complete, resulting in the need to develop projection algorithms for specific industry segments and metrics in some report series. No representation is made as to the accuracy of the databases utilized or the results of subsequent analyses. Neither the Brandow Company nor its resellers has undertaken independent primary research to confirm the accuracy of the data utilized in the Profile analyses. Neither the Brandow Company nor its resellers are responsible for conclusions drawn or decisions made based upon this data or analysis. In no event will the Brandow Company or its resellers be liable for any damages, direct, indirect, incidental or consequential resulting from the use of the information contained in BizMiner reports.

Our Approach to Scoring

Industry Financial reports offer two types of scoring. The Variance shown for each ratio measures the percentage difference between client ratios and the industry average for the selected industry, sales class and market. The Variance results in a Score of 1-5 (5 being best) for each year of each selected ratio. The application of the Variances to the Score depends on the specific ratio involved; in some cases (which we call Standard Scoring) higher is better; in some, lower (Reverse Scoring) is better; in a few, closest to the industry average (Balanced Scoring) is best. You can find the detailed approach for each Industry Financial ratio below.

For each ratio, the score for all selected years is averaged to determine the overall Ratio Score. The Ratio Scores for each of the four ratio categories (Cash flow/Solvency; Profitability; Efficiency; Debt-Risk) reflect the average Ratio Scores in each category. (P1 also provides Category Scores for each year as well as the average of all selected years.) The Overall Total Score on P1 of the Industry Financial report reflects the average of the Category Scores.



Scoring for ratios is calculated in one of three ways:

  • Standard (higher is generally better)
  • Reverse (lower is generally better)
  • Balanced (middle is generally good, too high or too low is not)

All three types are based on a scale of 1-5, with 5 being "best" and 1 being "worst". All percentages are shown as a deviation from the industry average.

Standard (basically higher is better)

  • +/-10% from average= 3
  • +11% to +20% above average= 4
  • >20% above average= 5
  • +11% to +20% below average= 2
  • >20% below average= 1

Reverse (lower is better)

  • +/-10% from average= 3
  • +11% to +20% above average= 2
  • >20% above average= 1
  • +11% to +20% below average= 4
  • >20% below average= 5

Balanced (middle is good, too high or too low is not)

  • +/-10% from average= 5
  • 11% to 15% above or below average= 4
  • +16% to +25% above or below average= 3
  • 25%-30% above or below average= 2
  • 30% above or below average= 1

The corresponding applications for each ratio are highlighted below. Individual ratio scores are averaged for all selected years.

CASH FLOW/SOLVENCY Summary: Average selected ratios for this category

  • Current Ratio: STANDARD SCORING
  • Quick Ratio: STANDARD SCORING
  • Net Working Capital: STANDARD SCORING
  • Accounts Payable: Business Revenue: BALANCED SCORING
  • Days Payable: BALANCED SCORING

PROFITABILITY Summary: Average selected ratios for this category

  • Return on Business Revenue: STANDARD SCORING
  • EBITDA: Business Revenue: STANDARD SCORING
  • Discretionary Owner Earnings: STANDARD SCORING
  • Return on Assets: STANDARD SCORING
  • Return on Net Worth: STANDARD SCORING

EFFICIENCY Summary: Average selected ratios for this category

  • Assets: Business Revenue: BALANCED SCORING
  • Days Inventory: BALANCED SCORING
  • Days Receivables: REVERSE SCORING
  • Current Asset Turnover: STANDARD SCORING
  • Fixed Asset Turnover: STANDARD SCORING
  • Gross Margin: Business Revenue: STANDARD SCORING
  • Sales Per Employee: STANDARD SCORING

DEBT-RISK Summary: Average selected ratios for this category

  • Interest Coverage: STANDARD SCORING
  • Current Liabilities: Net Worth: REVERSE SCORING
  • Long-Term Liabilities: Net Worth: REVERSE SCORING
  • Total Liabilities: Net Worth: REVERSE SCORING
  • Loans-Notes Payable: Net Worth: REVERSE SCORING
  • Current Liabilities: Inventory: BALANCED SCORING
  • Modified Z-Score:: STANDARD SCORING

About the Vestimate

Bizminer’s Vestimate™ enterprise value is our estimated market value for an individual business operation. Vestimates ™ are calculated for more than 12 million US business establishments and updated monthly. The Vestimate™ is a starting point in determining a business value but is not an appraisal or valuation.

Vestimates™ are based on data and projections applied to our proprietary calculations. Bizminer develops sales data for millions of US business operations using sales per employee, industry pricing and productivity data along with enterprise-level employment reports. Our content has been accepted in US Tax Court and utilized by thousands of accounting, valuation and banking professionals as well as dozens of university business libraries.

We marry that content to more than 28,000 business transactions to create median and quartile estimates of worth derived from Business Valuation Resources Pratt’s Stats database. In almost every case, at least two different types of multiples are averaged to create median, quartile 1 and quartile 3 value estimates in four different sales class groups. The median values are available in our Free Vestimate™ tool, while more robust, customizable business value content and searches and values are available in Vestimate™Plus.

Importantly, the Vestimate™ only reflects Bizminer’s estimate of the current worth of a business operation given the data available to us. For example, we do not know the Owner Earnings of every business enterprise, and use the industry sales class average in our calculations instead; the actual value of firms with significantly lower or higher Owner Earnings will likewise vary from calculations of sales multiples that rely upon those metrics.

You should not use a Vestimate™ in place of a valuation, though you can share it with business brokers or valuation professionals. Bizminer does not offer the Vestimate™ as the basis of any specific business-related or other financial transaction. You will not be able to use a Vestimate™ to secure a business or personal loan. Our data sources may be incomplete or incorrect; nor have we physically researched or inspected many important details necessary to the valuation of a specific enterprise. The Vestimate™ does not consider the market environment details nor the idiosyncrasies of a firm’s performance that can influence the actual value or selling price.

We encourage business buyers, sellers, owners and browsers to enhance their understanding of the value of any enterprise before making decisions or taking action. The Vestimate™ is a modeled informational tool, not a guide to action. For that we recommend obtaining an appraisal from a business broker, a valuation from a certified valuation professional, or both.