2019 construction financial analysis report
TRANSCRIPT
2019 Construction Financial Analysis Report03 ABO UT TH E
DATA
2019 FI NAN C IAL ANALYS I S
04 CO M M E RC IAL CO NTR ACTO R S
05 Less Than $25 Million
08 $25 Million–$100 Million
11 More Than $100 Million
14 H E AV Y & H I G HWAY CO NTR ACTO R S
15 Less Than $50 Million
18 More Than $50 Million
21 E LECTR I CAL CO NTR ACTO R S
25 M EC HAN I CAL CO NTR ACTO R S
29 S PEC IALT Y TR AD E CO NTR ACTO R S
30 Less Than $10 Million
33 $10 Million–$25 Million
36 $25 Million–$50 Million
39 More Than $50 Million
CONTENTS
The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without limitation, legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought.
01MOSS ADAMS 2019 Construction Financial Analysis Report
This year’s report suggests change is in the air. While data shows the construction industry is relatively stable, it also points to the importance of infrastructure changes and technological advancements if a company is to remain competitive.
Margins, return on equity, and profit data remained strong in 2018–2019 data, while backlogs increased only slightly compared to the prior year. All in all, year-end financial reports show the strength of the balance sheet is relatively stable.
• That said, the industry is still struggling with the fluctuation of material pricing, steel tariffs, and a shortage of skilled labor. Regulatory changes such as tax reform, revisions to revenue recognition, and updates to lease accounting will also affect financials, key ratios, and tax planning over the next several years. These trends suggest companies may need to begin strengthening their balance sheets now to prepare for the next economic downturn and remain sustainable over the next five to 10 years.
• While these changes introduce challenges, they also provide opportunities to plan ahead and address inefficiencies. If your company has held off on implementing new technology in the past, it may need to make changes in the near future to remain competitive. Finding more efficient, sustainable ways to complete tasks with fewer costs to your business may have a significant impact in coming years. Take a look at the steps on the right-hand side to learn how you can get started.
We hope you find this report a valuable planning tool. Take the time to examine how your own ratios compare and how the results can guide future improvements to your business. If you have feedback for how we can make this report more valuable to you, I invite you to contact me directly with suggestions.
Here’s to planning your continued success.
ELAINE ERVIN
(206) 302-6399 | [email protected]
Adapt to Upcoming Changes
o Analyze your accounting and technology systems to determine capacity and adapt to upcoming changes—such as 2017 tax reform changes, accounting for leases, and revenue recognition. Adopt more efficient systems if necessary.
o Implement structural changes to increase efficiencies, fill labor gaps, increase tax rate savings, and benefit from new incentives.
o Incorporate a technology plan into your corporate strategy for future years to stay ahead of emerging developments and continue looking forward.
o Consult a tax professional to learn how new laws could affect your company.
Get Engaged
o Collaborate with educational institutions to encourage and promote careers in the construction industry.
o Implement industry-association education and training programs to narrow the knowledge gap.
Address Risk
o Determine current risks and take steps to improve internal controls and mitigate future risk.
o Assign team members who are responsible for implementing changes,
Introduction Opportunities for Growth and Transformation
The data from this year’s report reflects information from more than 145 contractors located across the Western United States. Throughout this report, regional figures reflect information from these companies, while the national figures were obtained from the Construction Financial Management Association (CFMA) Annual Financial Survey.
The financial information used in this report isn’t selected by any random or statistically reliable method. The financial information is voluntarily submitted with no limitation on company size. Some of the construction categories may include smaller sample sizes, which can increase the chance that some composites don’t fully represent the population. An outlier statement can occasionally be present in the sample, causing disproportionate influence on the information reported.
Companies within the same category may differ in their methods of operations, labor markets, geographic location, accounting methods, and more, all of which can affect the composite calculations. For these reasons, we recommend you use the data as a general guideline to supplement other methods of financial analysis and not as an absolute industry norm.
Applicable dates of Financial Information
The 2019 information presented in this report is derived from financial statements with a year-end during 2018; and likewise, the 2018 information is from financial statements with a year-end during 2017.
Information Presented in Common Size
Balance sheet and income statement dollar figures are averaged and rounded to the nearest thousand. Balance sheet and income statement information is also shown in common size format, with each item a percentage of total assets and contract revenue. The common size statements are computed by dividing the average dollar amounts as displayed.
Ratio Calculations
The ratios presented are calculated using the composite average dollar figures displayed for each category.
About the Data
03MOSS ADAMS 2019 Construction Financial Analysis Report AboUT ThE dATA
05 LESS THAN $25 MILLION
08 $25 MILLION–$100 MILLION
11 MORE THAN $100 MILLION
SECTION ONE
Commercial Contractors
2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 28,000 0.52 23,000 0.47 30,000 0.50
461,000 10.22 287,000 5.28 190,000 3.86 294,000 4.90
122,000 2.71 163,000 3.00 154,000 3.13 131,000 2.18
4,108,000 91.10 4,775,000 87.87 4,227,000 85.83 5,271,000 87.83
5,000 0.11 - - 105,000 2.13 31,000 0.52
348,000 7.72 523,000 9.62 482,000 9.79 558,000 9.30
48,000 1.07 137,000 2.51 111,000 2.25 141,000 2.35
4,509,000 100.00 5,435,000 100.00 4,925,000 100.00 6,001,000 100.00
145,000 3.22 115,000 2.12 163,000 3.31 152,000 2.53
1,823,000 40.43 2,202,000 40.52 2,113,000 42.90 2,630,000 43.83
446,000 9.89 767,000 14.11 578,000 11.74 743,000 12.38
- - 5,000 0.09 1,000 - 8,000 0.13
27,000 0.60 69,000 1.27 53,000 1.08 58,000 0.97
8,000 0.17 41,000 0.75 2,000 0.04 42,000 0.70
2,449,000 54.31 3,199,000 58.86 2,910,000 59.07 3,633,000 60.54
362,000 8.03 122,000 2.24 98,000 1.99 290,000 4.83
8,000 0.18 14,000 0.26 24,000 0.49 23,000 0.38
4,000 0.09 8,000 0.15 50,000 1.03 29,000 0.49
2,823,000 62.61 3,343,000 61.51 3,082,000 62.58 3,975,000 66.24
1,686,000 37.39 2,092,000 38.49 1,843,000 37.42 2,026,000 33.76
4,509,000 100.00 5,435,000 100.00 4,925,000 100.00 6,001,000 100.00
12,904,000 100.00 16,933,000 100.00 14,176,000 100.00 18,042,000 100.00
11,393,000 88.29 14,936,000 88.21 12,620,000 89.02 15,845,000 87.82
1,511,000 11.71 1,997,000 11.79 1,556,000 10.98 2,197,000 12.18
1,019,000 7.90 1,508,000 8.91 940,000 6.63 1,507,000 8.35
492,000 3.81 489,000 2.88 616,000 4.35 690,000 3.83
(3,000) (0.02) (24,000) (0.14) (5,000) (0.04) 8,000 0.04
495,000 3.83 513,000 3.02 621,000 4.39 682,000 3.79
11,000 0.09 15,000 0.09 12,000 0.08 28,000 0.16
484,000 3.74 498,000 2.93 609,000 4.31 654,000 3.63
05MOSS ADAMS 2019 Construction Financial Analysis Report CoMMERCIAL CoNTRACToRS / Less Than $25 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
COmmERCIal CONTRaCTORS
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .6
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
9 .1
8 .5
7. 6
8 .3
6 .2
7. 2
11 .4
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 5,000 0.02 2,000 0.01 21,000 0.09
65,000 0.39 93,000 0.42 69,000 0.51 127,000 0.57
48,000 0.29 110,000 0.49 1,000 0.01 75,000 0.33
12,212,000 73.39 16,058,000 71.91 9,872,000 72.82 15,334,000 68.65
134,000 0.81 629,000 2.82 96,000 0.71 1,118,000 5.01
9,000 0.05 72,000 0.32 5,000 0.04 107,000 0.48
86,000 0.51 103,000 0.46 39,000 0.28 64,000 0.29
12,441,000 74.76 16,862,000 75.51 10,012,000 73.85 16,623,000 74.43
4,200,000 25.24 5,470,000 24.49 3,545,000 26.15 5,712,000 25.57
16,641,000 100.00 22,332,000 100.00 13,557,000 100.00 22,335,000 100.00
59,271,000 100.00 71,464,000 100.00 52,020,000 100.00 70,942,000 100.00
55,154,000 93.05 66,156,000 92.57 48,391,000 93.02 64,944,000 91.55
4,117,000 6.95 5,308,000 7.43 3,629,000 6.98 5,998,000 8.45
2,517,000 4.25 3,608,000 5.05 2,320,000 4.46 4,009,000 5.65
1,600,000 2.70 1,700,000 2.38 1,309,000 2.52 1,989,000 2.80
(79,000) (0.13) (124,000) (0.17) (91,000) (0.17) (22,000) (0.03)
1,679,000 2.83 1,824,000 2.55 1,400,000 2.69 2,011,000 2.83
9,000 0.02 26,000 0.04 9,000 0.02 26,000 0.04
1,670,000 2.81 1,798,000 2.51 1,391,000 2.67 1,985,000 2.79
08MOSS ADAMS 2019 Construction Financial Analysis Report CoMMERCIAL CoNTRACToRS / $25 Million–$100 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
COmmERCIal CONTRaCTORS
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .2
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
9 .1
9 .3
1 0
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 225,000 0.40 823,000 0.95 473,000 0.89
54,779,000 64.01 34,844,000 61.32 56,054,000 64.78 31,693,000 59.97
10,915,000 12.75 7,148,000 12.58 10,049,000 11.61 6,458,000 12.22
- - 55,000 0.10 - - 24,000 0.05
- - 12,000 0.02 - - 17,000 0.03
11MOSS ADAMS 2019 Construction Financial Analysis Report CoMMERCIAL CoNTRACToRS / More Than $100 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
COmmERCIal CONTRaCTORS
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .2
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 0
2017 2018 2019
SECTION T WO
Heavy & Highway Contractors
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 12,000 0.13 - - 8,000 0.09
2,000 0.02 146,000 1.53 - - 67,000 0.76
246,000 2.30 136,000 1.42 155,000 1.68 133,000 1.50
5,204,000 48.70 5,436,000 56.85 4,153,000 44.94 4,203,000 47.69
5,482,000 51.30 4,124,000 43.15 5,088,000 55.06 4,608,000 52.31
10,686,000 100.00 9,560,000 100.00 9,241,000 100.00 8,811,000 100.00
19,170,000 100.00 16,221,000 100.00 19,172,000 100.00 16,769,000 100.00
16,184,000 84.42 13,915,000 85.78 15,951,000 83.20 14,123,000 84.22
2,986,000 15.58 2,306,000 14.22 3,221,000 16.80 2,646,000 15.78
2,064,000 10.77 1,643,000 10.13 1,614,000 8.42 1,388,000 8.28
922,000 4.81 663,000 4.09 1,607,000 8.38 1,258,000 7.50
90,000 0.47 (79,000) (0.49) 85,000 0.44 90,000 0.54
832,000 4.34 742,000 4.58 1,522,000 7.94 1,168,000 6.96
6,000 0.03 (9,000) (0.06) 8,000 0.04 7,000 0.04
826,000 4.31 751,000 4.64 1,514,000 7.90 1,161,000 6.92
15MOSS ADAMS 2019 Construction Financial Analysis Report hEAvY & hIGhwAY CoNTRACToRS / Less Than $50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .5
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
5 .4
7. 0
6 .6
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 117,000 0.12 318,000 0.34 436,000 0.46
1,233,000 1.27 1,733,000 1.83 2,679,000 2.89 2,015,000 2.13
306,000 0.31 271,000 0.29 466,000 0.50 697,000 0.74
41,416,000 42.50 37,920,000 40.03 39,618,000 42.73 35,865,000 37.84
1,631,000 1.67 3,862,000 4.08 4,689,000 5.06 5,967,000 6.29
357,000 0.37 1,023,000 1.08 452,000 0.49 356,000 0.38
26,000 0.03 897,000 0.95 1,728,000 1.86 1,854,000 1.96
43,430,000 44.57 43,702,000 46.14 46,487,000 50.14 44,042,000 46.47
54,020,000 55.43 51,046,000 53.86 46,233,000 49.86 50,766,000 53.53
97,450,000 100.00 94,748,000 100.00 92,720,000 100.00 94,808,000 100.00
171,912,000 100.00 169,761,000 100.00 176,520,000 100.00 166,872,000 100.00
144,935,000 84.31 143,084,000 84.29 149,619,000 84.76 145,328,000 87.09
26,977,000 15.69 26,677,000 15.71 26,901,000 15.24 21,544,000 12.91
11,633,000 6.77 12,534,000 7.38 11,655,000 6.60 11,805,000 7.07
15,344,000 8.92 14,143,000 8.33 15,246,000 8.64 9,739,000 5.84
(355,000) (0.21) (282,000) (0.17) (481,000) (0.27) 287,000 0.17
15,699,000 9.13 14,425,000 8.50 15,727,000 8.91 9,452,000 5.67
147,000 0.09 666,000 0.39 816,000 0.46 (146,000) (0.09)
15,552,000 9.04 13,759,000 8.11 14,911,000 8.45 9,598,000 5.76
18MOSS ADAMS 2019 Construction Financial Analysis Report hEAvY & hIGhwAY CoNTRACToRS / More Than $50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .8
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
3 .3
6 .8
7. 8
9 .7
9 .6
8 .2
8 .3
1 6
.4 8
1 5
.6 9
1 5
.2 4
11 .7
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
1,000 - 313,000 1.23 1,000 - 401,000 1.31
14,382,000 68.40 15,248,000 59.83 23,903,000 68.06 17,677,000 57.82
87,000 0.41 127,000 0.50 461,000 1.31 437,000 1.43
2,882,000 13.71 3,007,000 11.80 5,236,000 14.91 3,199,000 10.46
413,000 1.96 477,000 1.87 644,000 1.83 426,000 1.39
18,756,000 89.19 22,116,000 86.78 31,613,000 90.00 25,162,000 82.29
89,000 0.42 18,000 0.07 144,000 0.41 37,000 0.12
1,198,000 5.71 2,731,000 10.72 2,233,000 6.36 3,380,000 11.06
984,000 4.68 622,000 2.43 1,132,000 3.23 1,995,000 6.53
21,027,000 100.00 25,487,000 100.00 35,122,000 100.00 30,574,000 100.00
1,546,000 7.35 795,000 3.12 4,036,000 11.49 1,142,000 3.74
6,529,000 31.05 8,153,000 31.99 9,934,000 28.28 7,979,000 26.10
2,948,000 14.02 5,962,000 23.39 6,483,000 18.46 6,026,000 19.71
1,000 - 237,000 0.93 - - 85,000 0.28
578,000 2.75 361,000 1.42 937,000 2.67 380,000 1.24
462,000 2.20 349,000 1.37 172,000 0.49 1,134,000 3.71
12,064,000 57.37 15,857,000 62.22 21,562,000 61.39 16,746,000 54.78
1,272,000 6.05 1,542,000 6.05 1,166,000 3.32 2,481,000 8.11
11,000 0.05 41,000 0.16 16,000 0.05 133,000 0.44
378,000 1.80 305,000 1.20 936,000 2.66 607,000 1.99
13,725,000 65.27 17,745,000 69.63 23,680,000 67.42 19,967,000 65.32
7,302,000 34.73 7,742,000 30.37 11,442,000 32.58 10,607,000 34.68
21,027,000 100.00 25,487,000 100.00 35,122,000 100.00 30,574,000 100.00
63,982,000 100.00 66,946,000 100.00 102,185,000 100.00 78,846,000 100.00
54,955,000 85.89 57,024,000 85.18 87,453,000 85.58 66,826,000 84.76
9,027,000 14.11 9,922,000 14.82 14,732,000 14.42 12,020,000 15.24
6,069,000 9.49 6,743,000 10.07 10,014,000 9.80 7,759,000 9.84
2,958,000 4.62 3,179,000 4.75 4,718,000 4.62 4,261,000 5.40
100,000 0.16 (9,000) (0.01) 297,000 0.29 18,000 0.02
2,858,000 4.46 3,188,000 4.76 4,421,000 4.33 4,243,000 5.38
185,000 0.29 362,000 0.54 366,000 0.36 423,000 0.54
2,673,000 4.17 2,826,000 4.22 4,055,000 3.97 3,820,000 4.84
22MOSS ADAMS 2019 Construction Financial Analysis Report ELECTRICAL CoNTRACToRS / More Than $50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
REGIONAL RESPONDENTS BY TYPE
2018 2019
ElECTRICal CONTRaCTORS
ELECTRICAL CoNTRACToRS
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .5
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
5 .6 9 .7
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
82,000 0.39 5,000 0.02 - - 104,000 0.36
2,474,000 11.79 3,918,000 13.38 2,729,000 11.03 3,446,000 11.81
218,000 1.05 1,120,000 3.81 80,000 0.32 1,910,000 6.56
20,980,000 100.00 29,286,000 100.00 24,751,000 100.00 29,170,000 100.00
113,000 0.54 525,000 1.79 1,091,000 4.41 884,000 3.03
6,748,000 32.16 9,518,000 32.50 8,320,000 33.61 7,953,000 27.26
3,903,000 18.60 4,687,000 16.00 5,058,000 20.44 4,423,000 15.16
1,000 - 42,000 0.14 1,000 - 57,000 0.20
214,000 1.02 625,000 2.13 96,000 0.39 341,000 1.17
162,000 0.77 345,000 1.18 231,000 0.93 1,462,000 5.01
11,141,000 53.09 15,742,000 53.74 14,797,000 59.78 15,120,000 51.83
988,000 4.71 1,901,000 6.49 663,000 2.68 2,104,000 7.21
- - 31,000 0.11 - - 109,000 0.37
(17,000) (0.03) (2,000) - 54,000 0.08 71,000 0.09
2,686,000 4.10 2,787,000 3.67 3,202,000 4.47 3,219,000 4.17
108,000 0.16 81,000 0.11 1,000 0.00 270,000 0.35
2,578,000 3.94 2,706,000 3.56 3,201,000 4.47 2,949,000 3.82
26MOSS ADAMS 2019 Construction Financial Analysis Report MEChANICAL CoNTRACToRS / More Than $50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
REGIONAL RESPONDENTS BY TYPE
2018 2019
mECHaNICal CONTRaCTORS
MEChANICAL CoNTRACToRS
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .6
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
8 .1
7. 4
7. 6
5 .8
6 .5
7. 2
17 .0
2017 2018 2019
SECTION FIvE
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - - - 47,000 1.83 9,000 0.34
- - 2,000 0.09 - - 4,000 0.15
30MOSS ADAMS 2019 Construction Financial Analysis Report SPECIALTY TRAdE CoNTRACToRS / Less Than $10 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
2 .0
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
2 .7
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 168,000 2.14 51,000 0.89 160,000 2.24
3,887,000 55.15 3,522,000 44.86 2,881,000 50.35 3,687,000 51.59
85,000 1.21 124,000 1.58 93,000 1.63 111,000 1.55
251,000 3.56 427,000 5.44 592,000 10.35 393,000 5.50
74,000 1.05 160,000 2.04 300,000 5.24 201,000 2.81
5,890,000 83.57 5,629,000 71.70 4,683,000 81.85 5,696,000 79.70
13,000 0.18 6,000 0.08 - - 38,000 0.53
1,138,000 16.15 1,787,000 22.76 999,000 17.46 1,191,000 16.66
7,000 0.10 429,000 5.46 40,000 0.69 222,000 3.11
7,048,000 100.00 7,851,000 100.00 5,722,000 100.00 7,147,000 100.00
10,000 0.14 302,000 3.85 270,000 4.72 315,000 4.41
1,470,000 20.86 1,565,000 19.93 1,431,000 25.01 1,627,000 22.76
1,687,000 23.94 875,000 11.15 575,000 10.05 797,000 11.15
129,000 1.83 20,000 0.25 3,000 0.05 20,000 0.28
92,000 1.31 194,000 2.47 158,000 2.76 127,000 1.78
- - 68,000 0.87 25,000 0.44 128,000 1.79
3,388,000 48.08 3,024,000 38.52 2,462,000 43.03 3,014,000 42.17
350,000 4.97 933,000 11.88 302,000 5.28 434,000 6.07
98,000 1.38 72,000 0.92 82,000 1.43 32,000 0.45
- - 54,000 0.69 62,000 1.08 138,000 1.93
3,836,000 54.43 4,083,000 52.01 2,908,000 50.82 3,618,000 50.62
3,212,000 45.57 3,768,000 47.99 2,814,000 49.18 3,529,000 49.38
7,048,000 100.00 7,851,000 100.00 5,722,000 100.00 7,147,000 100.00
14,297,000 100.00 16,513,000 100.00 15,736,000 100.00 16,345,000 100.00
10,979,000 76.79 12,914,000 78.21 12,175,000 77.37 13,116,000 80.24
3,318,000 23.21 3,599,000 21.79 3,561,000 22.63 3,229,000 19.76
2,176,000 15.22 2,463,000 14.92 2,262,000 14.37 2,277,000 13.93
1,142,000 7.99 1,136,000 6.87 1,299,000 8.26 952,000 5.83
2,000 0.01 12,000 0.07 3,000 0.02 6,000 0.04
1,140,000 7.98 1,124,000 6.80 1,296,000 8.24 946,000 5.79
138,000 0.97 45,000 0.27 82,000 0.52 31,000 0.19
1,002,000 7.01 1,079,000 6.53 1,214,000 7.72 915,000 5.60
33MOSS ADAMS 2019 Construction Financial Analysis Report SPECIALTY TRAdE CoNTRACToRS / $10 Million–$25 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
2 .4
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
6 .2
7. 7
5 .7
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
17,000 0.13 355,000 2.66 - - 251,000 1.79
7,146,000 52.59 7,384,000 55.39 8,328,000 47.82 7,613,000 54.28
183,000 1.35 266,000 2.00 202,000 1.16 217,000 1.55
2,067,000 15.21 805,000 6.04 1,364,000 7.83 815,000 5.81
172,000 1.27 231,000 1.73 438,000 2.51 337,000 2.40
10,841,000 79.79 10,821,000 81.17 11,578,000 66.47 11,142,000 79.44
- - - - - - 76,000 0.54
- - 25,000 0.19 - - 26,000 0.19
6,000 0.04 17,000 0.13 - - 56,000 0.40
265,000 1.95 89,000 0.67 286,000 1.64 206,000 1.47
8,848,000 65.12 6,981,000 52.37 8,316,000 47.75 7,725,000 55.08
4,739,000 34.88 6,349,000 47.63 9,101,000 52.25 6,301,000 44.92
13,587,000 100.00 13,330,000 100.00 17,417,000 100.00 14,026,000 100.00
35,211,000 100.00 33,516,000 100.00 37,980,000 100.00 34,330,000 100.00
29,140,000 82.76 26,538,000 79.18 29,989,000 78.96 27,402,000 79.82
6,071,000 17.24 6,978,000 20.82 7,991,000 21.04 6,928,000 20.18
4,430,000 12.58 4,426,000 13.21 4,585,000 12.07 4,632,000 13.49
1,641,000 4.66 2,552,000 7.61 3,406,000 8.97 2,296,000 6.69
51,000 0.14 24,000 0.07 97,000 0.26 9,000 0.03
1,590,000 4.52 2,528,000 7.54 3,309,000 8.71 2,287,000 6.66
2,000 0.01 91,000 0.27 22,000 0.06 37,000 0.11
1,588,000 4.51 2,437,000 7.27 3,287,000 8.65 2,250,000 6.55
36MOSS ADAMS 2019 Construction Financial Analysis Report SPECIALTY TRAdE CoNTRACToRS / $25 Million–$50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .8
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
8 .3
11 .9
9 .0
6 .5
6 .4
6 .8
2 1
.4 4
17 .2
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 1,172,000 1.98 2,647,000 2.52 1,122,000 1.76
41,029,000 50.94 33,293,000 56.21 36,727,000 34.98 38,938,000 61.24
130,000 0.16 574,000 0.97 525,000 0.50 713,000 1.12
8,712,000 10.82 4,402,000 7.43 5,435,000 5.18 4,721,000 7.43
2,006,000 2.48 1,346,000 2.27 2,356,000 2.24 1,142,000 1.80
64,530,000 80.11 49,180,000 83.03 56,062,000 53.39 52,823,000 83.08
6,000 0.01 261,000 0.44 595,000 0.57 16,000 0.03
11,384,000 14.13 7,823,000 13.21 46,763,000 44.54 8,400,000 13.21
4,628,000 5.75 1,964,000 3.32 1,575,000 1.50 2,340,000 3.68
80,548,000 100.00 59,228,000 100.00 104,995,000 100.00 63,579,000 100.00
342,000 0.42 1,417,000 2.39 208,000 0.20 2,863,000 4.50
26,643,000 33.08 17,377,000 29.34 19,336,000 18.42 17,797,000 27.99
15,029,000 18.66 9,789,000 16.53 10,522,000 10.02 9,958,000 15.66
48,000 0.06 149,000 0.25 - - 143,000 0.22
1,321,000 1.64 502,000 0.85 2,834,000 2.70 1,292,000 2.03
- - 1,160,000 1.96 24,000 0.02 1,624,000 2.55
43,383,000 53.86 30,394,000 51.32 32,924,000 31.36 33,677,000 52.95
7,882,000 9.79 3,377,000 5.70 25,808,000 24.58 6,555,000 10.31
1,000 - 192,000 0.32 - - 205,000 0.32
579,000 0.72 967,000 1.64 419,000 0.40 1,456,000 2.31
51,845,000 64.37 34,930,000 58.98 59,151,000 56.34 41,893,000 65.89
28,703,000 35.63 24,298,000 41.02 45,844,000 43.66 21,686,000 34.11
80,548,000 100.00 59,228,000 100.00 104,995,000 100.00 63,579,000 100.00
196,891,000 100.00 157,576,000 100.00 166,995,000 100.00 167,692,000 100.00
169,615,000 86.15 131,050,000 83.17 127,879,000 76.58 140,924,000 84.04
27,276,000 13.85 26,526,000 16.83 39,116,000 23.42 26,768,000 15.96
19,628,000 9.97 19,684,000 12.49 23,141,000 13.86 18,703,000 11.15
7,648,000 3.88 6,842,000 4.34 15,975,000 9.56 8,065,000 4.81
(752,000) (0.38) 24,000 0.02 1,131,000 0.68 234,000 0.14
8,400,000 4.26 6,818,000 4.32 14,844,000 8.88 7,831,000 4.67
90,000 0.05 440,000 0.28 123,000 0.07 450,000 0.27
8,310,000 4.21 6,378,000 4.04 14,721,000 8.81 7,381,000 4.40
39MOSS ADAMS 2019 Construction Financial Analysis Report SPECIALTY TRAdE CoNTRACToRS / More Than $50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .5
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
11 .1
11 .3
6 .1
6 .5
6 .6
6 .9
1 5
.5 3
1 3
.8 5
2 3
.4 2
1 6
.1 5
1 6
.8 3
1 5
.9 6
5 .2
6 .9
3 .6
6 .7
6 .5
7. 7
2017 2018 2019
About Moss Adams With more than 3,200 professionals across 25-plus locations in the West and beyond, Moss Adams provides the world’s most innovative companies with specialized accounting, consulting, and wealth management services to help them embrace emerging opportunity. Discover how Moss Adams is bringing more West to business.
Assurance, tax, and consulting offered through Moss Adams LLP. Investment advisory services offered through Moss Adams wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.
Contents
Introduction
2019 FI NAN C IAL ANALYS I S
04 CO M M E RC IAL CO NTR ACTO R S
05 Less Than $25 Million
08 $25 Million–$100 Million
11 More Than $100 Million
14 H E AV Y & H I G HWAY CO NTR ACTO R S
15 Less Than $50 Million
18 More Than $50 Million
21 E LECTR I CAL CO NTR ACTO R S
25 M EC HAN I CAL CO NTR ACTO R S
29 S PEC IALT Y TR AD E CO NTR ACTO R S
30 Less Than $10 Million
33 $10 Million–$25 Million
36 $25 Million–$50 Million
39 More Than $50 Million
CONTENTS
The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without limitation, legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought.
01MOSS ADAMS 2019 Construction Financial Analysis Report
This year’s report suggests change is in the air. While data shows the construction industry is relatively stable, it also points to the importance of infrastructure changes and technological advancements if a company is to remain competitive.
Margins, return on equity, and profit data remained strong in 2018–2019 data, while backlogs increased only slightly compared to the prior year. All in all, year-end financial reports show the strength of the balance sheet is relatively stable.
• That said, the industry is still struggling with the fluctuation of material pricing, steel tariffs, and a shortage of skilled labor. Regulatory changes such as tax reform, revisions to revenue recognition, and updates to lease accounting will also affect financials, key ratios, and tax planning over the next several years. These trends suggest companies may need to begin strengthening their balance sheets now to prepare for the next economic downturn and remain sustainable over the next five to 10 years.
• While these changes introduce challenges, they also provide opportunities to plan ahead and address inefficiencies. If your company has held off on implementing new technology in the past, it may need to make changes in the near future to remain competitive. Finding more efficient, sustainable ways to complete tasks with fewer costs to your business may have a significant impact in coming years. Take a look at the steps on the right-hand side to learn how you can get started.
We hope you find this report a valuable planning tool. Take the time to examine how your own ratios compare and how the results can guide future improvements to your business. If you have feedback for how we can make this report more valuable to you, I invite you to contact me directly with suggestions.
Here’s to planning your continued success.
ELAINE ERVIN
(206) 302-6399 | [email protected]
Adapt to Upcoming Changes
o Analyze your accounting and technology systems to determine capacity and adapt to upcoming changes—such as 2017 tax reform changes, accounting for leases, and revenue recognition. Adopt more efficient systems if necessary.
o Implement structural changes to increase efficiencies, fill labor gaps, increase tax rate savings, and benefit from new incentives.
o Incorporate a technology plan into your corporate strategy for future years to stay ahead of emerging developments and continue looking forward.
o Consult a tax professional to learn how new laws could affect your company.
Get Engaged
o Collaborate with educational institutions to encourage and promote careers in the construction industry.
o Implement industry-association education and training programs to narrow the knowledge gap.
Address Risk
o Determine current risks and take steps to improve internal controls and mitigate future risk.
o Assign team members who are responsible for implementing changes,
Introduction Opportunities for Growth and Transformation
The data from this year’s report reflects information from more than 145 contractors located across the Western United States. Throughout this report, regional figures reflect information from these companies, while the national figures were obtained from the Construction Financial Management Association (CFMA) Annual Financial Survey.
The financial information used in this report isn’t selected by any random or statistically reliable method. The financial information is voluntarily submitted with no limitation on company size. Some of the construction categories may include smaller sample sizes, which can increase the chance that some composites don’t fully represent the population. An outlier statement can occasionally be present in the sample, causing disproportionate influence on the information reported.
Companies within the same category may differ in their methods of operations, labor markets, geographic location, accounting methods, and more, all of which can affect the composite calculations. For these reasons, we recommend you use the data as a general guideline to supplement other methods of financial analysis and not as an absolute industry norm.
Applicable dates of Financial Information
The 2019 information presented in this report is derived from financial statements with a year-end during 2018; and likewise, the 2018 information is from financial statements with a year-end during 2017.
Information Presented in Common Size
Balance sheet and income statement dollar figures are averaged and rounded to the nearest thousand. Balance sheet and income statement information is also shown in common size format, with each item a percentage of total assets and contract revenue. The common size statements are computed by dividing the average dollar amounts as displayed.
Ratio Calculations
The ratios presented are calculated using the composite average dollar figures displayed for each category.
About the Data
03MOSS ADAMS 2019 Construction Financial Analysis Report AboUT ThE dATA
05 LESS THAN $25 MILLION
08 $25 MILLION–$100 MILLION
11 MORE THAN $100 MILLION
SECTION ONE
Commercial Contractors
2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 28,000 0.52 23,000 0.47 30,000 0.50
461,000 10.22 287,000 5.28 190,000 3.86 294,000 4.90
122,000 2.71 163,000 3.00 154,000 3.13 131,000 2.18
4,108,000 91.10 4,775,000 87.87 4,227,000 85.83 5,271,000 87.83
5,000 0.11 - - 105,000 2.13 31,000 0.52
348,000 7.72 523,000 9.62 482,000 9.79 558,000 9.30
48,000 1.07 137,000 2.51 111,000 2.25 141,000 2.35
4,509,000 100.00 5,435,000 100.00 4,925,000 100.00 6,001,000 100.00
145,000 3.22 115,000 2.12 163,000 3.31 152,000 2.53
1,823,000 40.43 2,202,000 40.52 2,113,000 42.90 2,630,000 43.83
446,000 9.89 767,000 14.11 578,000 11.74 743,000 12.38
- - 5,000 0.09 1,000 - 8,000 0.13
27,000 0.60 69,000 1.27 53,000 1.08 58,000 0.97
8,000 0.17 41,000 0.75 2,000 0.04 42,000 0.70
2,449,000 54.31 3,199,000 58.86 2,910,000 59.07 3,633,000 60.54
362,000 8.03 122,000 2.24 98,000 1.99 290,000 4.83
8,000 0.18 14,000 0.26 24,000 0.49 23,000 0.38
4,000 0.09 8,000 0.15 50,000 1.03 29,000 0.49
2,823,000 62.61 3,343,000 61.51 3,082,000 62.58 3,975,000 66.24
1,686,000 37.39 2,092,000 38.49 1,843,000 37.42 2,026,000 33.76
4,509,000 100.00 5,435,000 100.00 4,925,000 100.00 6,001,000 100.00
12,904,000 100.00 16,933,000 100.00 14,176,000 100.00 18,042,000 100.00
11,393,000 88.29 14,936,000 88.21 12,620,000 89.02 15,845,000 87.82
1,511,000 11.71 1,997,000 11.79 1,556,000 10.98 2,197,000 12.18
1,019,000 7.90 1,508,000 8.91 940,000 6.63 1,507,000 8.35
492,000 3.81 489,000 2.88 616,000 4.35 690,000 3.83
(3,000) (0.02) (24,000) (0.14) (5,000) (0.04) 8,000 0.04
495,000 3.83 513,000 3.02 621,000 4.39 682,000 3.79
11,000 0.09 15,000 0.09 12,000 0.08 28,000 0.16
484,000 3.74 498,000 2.93 609,000 4.31 654,000 3.63
05MOSS ADAMS 2019 Construction Financial Analysis Report CoMMERCIAL CoNTRACToRS / Less Than $25 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
COmmERCIal CONTRaCTORS
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .6
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
9 .1
8 .5
7. 6
8 .3
6 .2
7. 2
11 .4
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 5,000 0.02 2,000 0.01 21,000 0.09
65,000 0.39 93,000 0.42 69,000 0.51 127,000 0.57
48,000 0.29 110,000 0.49 1,000 0.01 75,000 0.33
12,212,000 73.39 16,058,000 71.91 9,872,000 72.82 15,334,000 68.65
134,000 0.81 629,000 2.82 96,000 0.71 1,118,000 5.01
9,000 0.05 72,000 0.32 5,000 0.04 107,000 0.48
86,000 0.51 103,000 0.46 39,000 0.28 64,000 0.29
12,441,000 74.76 16,862,000 75.51 10,012,000 73.85 16,623,000 74.43
4,200,000 25.24 5,470,000 24.49 3,545,000 26.15 5,712,000 25.57
16,641,000 100.00 22,332,000 100.00 13,557,000 100.00 22,335,000 100.00
59,271,000 100.00 71,464,000 100.00 52,020,000 100.00 70,942,000 100.00
55,154,000 93.05 66,156,000 92.57 48,391,000 93.02 64,944,000 91.55
4,117,000 6.95 5,308,000 7.43 3,629,000 6.98 5,998,000 8.45
2,517,000 4.25 3,608,000 5.05 2,320,000 4.46 4,009,000 5.65
1,600,000 2.70 1,700,000 2.38 1,309,000 2.52 1,989,000 2.80
(79,000) (0.13) (124,000) (0.17) (91,000) (0.17) (22,000) (0.03)
1,679,000 2.83 1,824,000 2.55 1,400,000 2.69 2,011,000 2.83
9,000 0.02 26,000 0.04 9,000 0.02 26,000 0.04
1,670,000 2.81 1,798,000 2.51 1,391,000 2.67 1,985,000 2.79
08MOSS ADAMS 2019 Construction Financial Analysis Report CoMMERCIAL CoNTRACToRS / $25 Million–$100 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
COmmERCIal CONTRaCTORS
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .2
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
9 .1
9 .3
1 0
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 225,000 0.40 823,000 0.95 473,000 0.89
54,779,000 64.01 34,844,000 61.32 56,054,000 64.78 31,693,000 59.97
10,915,000 12.75 7,148,000 12.58 10,049,000 11.61 6,458,000 12.22
- - 55,000 0.10 - - 24,000 0.05
- - 12,000 0.02 - - 17,000 0.03
11MOSS ADAMS 2019 Construction Financial Analysis Report CoMMERCIAL CoNTRACToRS / More Than $100 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
COmmERCIal CONTRaCTORS
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .2
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 0
2017 2018 2019
SECTION T WO
Heavy & Highway Contractors
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 12,000 0.13 - - 8,000 0.09
2,000 0.02 146,000 1.53 - - 67,000 0.76
246,000 2.30 136,000 1.42 155,000 1.68 133,000 1.50
5,204,000 48.70 5,436,000 56.85 4,153,000 44.94 4,203,000 47.69
5,482,000 51.30 4,124,000 43.15 5,088,000 55.06 4,608,000 52.31
10,686,000 100.00 9,560,000 100.00 9,241,000 100.00 8,811,000 100.00
19,170,000 100.00 16,221,000 100.00 19,172,000 100.00 16,769,000 100.00
16,184,000 84.42 13,915,000 85.78 15,951,000 83.20 14,123,000 84.22
2,986,000 15.58 2,306,000 14.22 3,221,000 16.80 2,646,000 15.78
2,064,000 10.77 1,643,000 10.13 1,614,000 8.42 1,388,000 8.28
922,000 4.81 663,000 4.09 1,607,000 8.38 1,258,000 7.50
90,000 0.47 (79,000) (0.49) 85,000 0.44 90,000 0.54
832,000 4.34 742,000 4.58 1,522,000 7.94 1,168,000 6.96
6,000 0.03 (9,000) (0.06) 8,000 0.04 7,000 0.04
826,000 4.31 751,000 4.64 1,514,000 7.90 1,161,000 6.92
15MOSS ADAMS 2019 Construction Financial Analysis Report hEAvY & hIGhwAY CoNTRACToRS / Less Than $50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .5
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
5 .4
7. 0
6 .6
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 117,000 0.12 318,000 0.34 436,000 0.46
1,233,000 1.27 1,733,000 1.83 2,679,000 2.89 2,015,000 2.13
306,000 0.31 271,000 0.29 466,000 0.50 697,000 0.74
41,416,000 42.50 37,920,000 40.03 39,618,000 42.73 35,865,000 37.84
1,631,000 1.67 3,862,000 4.08 4,689,000 5.06 5,967,000 6.29
357,000 0.37 1,023,000 1.08 452,000 0.49 356,000 0.38
26,000 0.03 897,000 0.95 1,728,000 1.86 1,854,000 1.96
43,430,000 44.57 43,702,000 46.14 46,487,000 50.14 44,042,000 46.47
54,020,000 55.43 51,046,000 53.86 46,233,000 49.86 50,766,000 53.53
97,450,000 100.00 94,748,000 100.00 92,720,000 100.00 94,808,000 100.00
171,912,000 100.00 169,761,000 100.00 176,520,000 100.00 166,872,000 100.00
144,935,000 84.31 143,084,000 84.29 149,619,000 84.76 145,328,000 87.09
26,977,000 15.69 26,677,000 15.71 26,901,000 15.24 21,544,000 12.91
11,633,000 6.77 12,534,000 7.38 11,655,000 6.60 11,805,000 7.07
15,344,000 8.92 14,143,000 8.33 15,246,000 8.64 9,739,000 5.84
(355,000) (0.21) (282,000) (0.17) (481,000) (0.27) 287,000 0.17
15,699,000 9.13 14,425,000 8.50 15,727,000 8.91 9,452,000 5.67
147,000 0.09 666,000 0.39 816,000 0.46 (146,000) (0.09)
15,552,000 9.04 13,759,000 8.11 14,911,000 8.45 9,598,000 5.76
18MOSS ADAMS 2019 Construction Financial Analysis Report hEAvY & hIGhwAY CoNTRACToRS / More Than $50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .8
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
3 .3
6 .8
7. 8
9 .7
9 .6
8 .2
8 .3
1 6
.4 8
1 5
.6 9
1 5
.2 4
11 .7
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
1,000 - 313,000 1.23 1,000 - 401,000 1.31
14,382,000 68.40 15,248,000 59.83 23,903,000 68.06 17,677,000 57.82
87,000 0.41 127,000 0.50 461,000 1.31 437,000 1.43
2,882,000 13.71 3,007,000 11.80 5,236,000 14.91 3,199,000 10.46
413,000 1.96 477,000 1.87 644,000 1.83 426,000 1.39
18,756,000 89.19 22,116,000 86.78 31,613,000 90.00 25,162,000 82.29
89,000 0.42 18,000 0.07 144,000 0.41 37,000 0.12
1,198,000 5.71 2,731,000 10.72 2,233,000 6.36 3,380,000 11.06
984,000 4.68 622,000 2.43 1,132,000 3.23 1,995,000 6.53
21,027,000 100.00 25,487,000 100.00 35,122,000 100.00 30,574,000 100.00
1,546,000 7.35 795,000 3.12 4,036,000 11.49 1,142,000 3.74
6,529,000 31.05 8,153,000 31.99 9,934,000 28.28 7,979,000 26.10
2,948,000 14.02 5,962,000 23.39 6,483,000 18.46 6,026,000 19.71
1,000 - 237,000 0.93 - - 85,000 0.28
578,000 2.75 361,000 1.42 937,000 2.67 380,000 1.24
462,000 2.20 349,000 1.37 172,000 0.49 1,134,000 3.71
12,064,000 57.37 15,857,000 62.22 21,562,000 61.39 16,746,000 54.78
1,272,000 6.05 1,542,000 6.05 1,166,000 3.32 2,481,000 8.11
11,000 0.05 41,000 0.16 16,000 0.05 133,000 0.44
378,000 1.80 305,000 1.20 936,000 2.66 607,000 1.99
13,725,000 65.27 17,745,000 69.63 23,680,000 67.42 19,967,000 65.32
7,302,000 34.73 7,742,000 30.37 11,442,000 32.58 10,607,000 34.68
21,027,000 100.00 25,487,000 100.00 35,122,000 100.00 30,574,000 100.00
63,982,000 100.00 66,946,000 100.00 102,185,000 100.00 78,846,000 100.00
54,955,000 85.89 57,024,000 85.18 87,453,000 85.58 66,826,000 84.76
9,027,000 14.11 9,922,000 14.82 14,732,000 14.42 12,020,000 15.24
6,069,000 9.49 6,743,000 10.07 10,014,000 9.80 7,759,000 9.84
2,958,000 4.62 3,179,000 4.75 4,718,000 4.62 4,261,000 5.40
100,000 0.16 (9,000) (0.01) 297,000 0.29 18,000 0.02
2,858,000 4.46 3,188,000 4.76 4,421,000 4.33 4,243,000 5.38
185,000 0.29 362,000 0.54 366,000 0.36 423,000 0.54
2,673,000 4.17 2,826,000 4.22 4,055,000 3.97 3,820,000 4.84
22MOSS ADAMS 2019 Construction Financial Analysis Report ELECTRICAL CoNTRACToRS / More Than $50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
REGIONAL RESPONDENTS BY TYPE
2018 2019
ElECTRICal CONTRaCTORS
ELECTRICAL CoNTRACToRS
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .5
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
5 .6 9 .7
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
82,000 0.39 5,000 0.02 - - 104,000 0.36
2,474,000 11.79 3,918,000 13.38 2,729,000 11.03 3,446,000 11.81
218,000 1.05 1,120,000 3.81 80,000 0.32 1,910,000 6.56
20,980,000 100.00 29,286,000 100.00 24,751,000 100.00 29,170,000 100.00
113,000 0.54 525,000 1.79 1,091,000 4.41 884,000 3.03
6,748,000 32.16 9,518,000 32.50 8,320,000 33.61 7,953,000 27.26
3,903,000 18.60 4,687,000 16.00 5,058,000 20.44 4,423,000 15.16
1,000 - 42,000 0.14 1,000 - 57,000 0.20
214,000 1.02 625,000 2.13 96,000 0.39 341,000 1.17
162,000 0.77 345,000 1.18 231,000 0.93 1,462,000 5.01
11,141,000 53.09 15,742,000 53.74 14,797,000 59.78 15,120,000 51.83
988,000 4.71 1,901,000 6.49 663,000 2.68 2,104,000 7.21
- - 31,000 0.11 - - 109,000 0.37
(17,000) (0.03) (2,000) - 54,000 0.08 71,000 0.09
2,686,000 4.10 2,787,000 3.67 3,202,000 4.47 3,219,000 4.17
108,000 0.16 81,000 0.11 1,000 0.00 270,000 0.35
2,578,000 3.94 2,706,000 3.56 3,201,000 4.47 2,949,000 3.82
26MOSS ADAMS 2019 Construction Financial Analysis Report MEChANICAL CoNTRACToRS / More Than $50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
REGIONAL RESPONDENTS BY TYPE
2018 2019
mECHaNICal CONTRaCTORS
MEChANICAL CoNTRACToRS
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .6
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
8 .1
7. 4
7. 6
5 .8
6 .5
7. 2
17 .0
2017 2018 2019
SECTION FIvE
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - - - 47,000 1.83 9,000 0.34
- - 2,000 0.09 - - 4,000 0.15
30MOSS ADAMS 2019 Construction Financial Analysis Report SPECIALTY TRAdE CoNTRACToRS / Less Than $10 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
2 .0
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
2 .7
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 168,000 2.14 51,000 0.89 160,000 2.24
3,887,000 55.15 3,522,000 44.86 2,881,000 50.35 3,687,000 51.59
85,000 1.21 124,000 1.58 93,000 1.63 111,000 1.55
251,000 3.56 427,000 5.44 592,000 10.35 393,000 5.50
74,000 1.05 160,000 2.04 300,000 5.24 201,000 2.81
5,890,000 83.57 5,629,000 71.70 4,683,000 81.85 5,696,000 79.70
13,000 0.18 6,000 0.08 - - 38,000 0.53
1,138,000 16.15 1,787,000 22.76 999,000 17.46 1,191,000 16.66
7,000 0.10 429,000 5.46 40,000 0.69 222,000 3.11
7,048,000 100.00 7,851,000 100.00 5,722,000 100.00 7,147,000 100.00
10,000 0.14 302,000 3.85 270,000 4.72 315,000 4.41
1,470,000 20.86 1,565,000 19.93 1,431,000 25.01 1,627,000 22.76
1,687,000 23.94 875,000 11.15 575,000 10.05 797,000 11.15
129,000 1.83 20,000 0.25 3,000 0.05 20,000 0.28
92,000 1.31 194,000 2.47 158,000 2.76 127,000 1.78
- - 68,000 0.87 25,000 0.44 128,000 1.79
3,388,000 48.08 3,024,000 38.52 2,462,000 43.03 3,014,000 42.17
350,000 4.97 933,000 11.88 302,000 5.28 434,000 6.07
98,000 1.38 72,000 0.92 82,000 1.43 32,000 0.45
- - 54,000 0.69 62,000 1.08 138,000 1.93
3,836,000 54.43 4,083,000 52.01 2,908,000 50.82 3,618,000 50.62
3,212,000 45.57 3,768,000 47.99 2,814,000 49.18 3,529,000 49.38
7,048,000 100.00 7,851,000 100.00 5,722,000 100.00 7,147,000 100.00
14,297,000 100.00 16,513,000 100.00 15,736,000 100.00 16,345,000 100.00
10,979,000 76.79 12,914,000 78.21 12,175,000 77.37 13,116,000 80.24
3,318,000 23.21 3,599,000 21.79 3,561,000 22.63 3,229,000 19.76
2,176,000 15.22 2,463,000 14.92 2,262,000 14.37 2,277,000 13.93
1,142,000 7.99 1,136,000 6.87 1,299,000 8.26 952,000 5.83
2,000 0.01 12,000 0.07 3,000 0.02 6,000 0.04
1,140,000 7.98 1,124,000 6.80 1,296,000 8.24 946,000 5.79
138,000 0.97 45,000 0.27 82,000 0.52 31,000 0.19
1,002,000 7.01 1,079,000 6.53 1,214,000 7.72 915,000 5.60
33MOSS ADAMS 2019 Construction Financial Analysis Report SPECIALTY TRAdE CoNTRACToRS / $10 Million–$25 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
2 .4
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
6 .2
7. 7
5 .7
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
17,000 0.13 355,000 2.66 - - 251,000 1.79
7,146,000 52.59 7,384,000 55.39 8,328,000 47.82 7,613,000 54.28
183,000 1.35 266,000 2.00 202,000 1.16 217,000 1.55
2,067,000 15.21 805,000 6.04 1,364,000 7.83 815,000 5.81
172,000 1.27 231,000 1.73 438,000 2.51 337,000 2.40
10,841,000 79.79 10,821,000 81.17 11,578,000 66.47 11,142,000 79.44
- - - - - - 76,000 0.54
- - 25,000 0.19 - - 26,000 0.19
6,000 0.04 17,000 0.13 - - 56,000 0.40
265,000 1.95 89,000 0.67 286,000 1.64 206,000 1.47
8,848,000 65.12 6,981,000 52.37 8,316,000 47.75 7,725,000 55.08
4,739,000 34.88 6,349,000 47.63 9,101,000 52.25 6,301,000 44.92
13,587,000 100.00 13,330,000 100.00 17,417,000 100.00 14,026,000 100.00
35,211,000 100.00 33,516,000 100.00 37,980,000 100.00 34,330,000 100.00
29,140,000 82.76 26,538,000 79.18 29,989,000 78.96 27,402,000 79.82
6,071,000 17.24 6,978,000 20.82 7,991,000 21.04 6,928,000 20.18
4,430,000 12.58 4,426,000 13.21 4,585,000 12.07 4,632,000 13.49
1,641,000 4.66 2,552,000 7.61 3,406,000 8.97 2,296,000 6.69
51,000 0.14 24,000 0.07 97,000 0.26 9,000 0.03
1,590,000 4.52 2,528,000 7.54 3,309,000 8.71 2,287,000 6.66
2,000 0.01 91,000 0.27 22,000 0.06 37,000 0.11
1,588,000 4.51 2,437,000 7.27 3,287,000 8.65 2,250,000 6.55
36MOSS ADAMS 2019 Construction Financial Analysis Report SPECIALTY TRAdE CoNTRACToRS / $25 Million–$50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .8
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
8 .3
11 .9
9 .0
6 .5
6 .4
6 .8
2 1
.4 4
17 .2
2017 2018 2019
Other current assets
Total Current Assets
Income tax payable
Other current liabilities
Total Current Liabilities
- - 1,172,000 1.98 2,647,000 2.52 1,122,000 1.76
41,029,000 50.94 33,293,000 56.21 36,727,000 34.98 38,938,000 61.24
130,000 0.16 574,000 0.97 525,000 0.50 713,000 1.12
8,712,000 10.82 4,402,000 7.43 5,435,000 5.18 4,721,000 7.43
2,006,000 2.48 1,346,000 2.27 2,356,000 2.24 1,142,000 1.80
64,530,000 80.11 49,180,000 83.03 56,062,000 53.39 52,823,000 83.08
6,000 0.01 261,000 0.44 595,000 0.57 16,000 0.03
11,384,000 14.13 7,823,000 13.21 46,763,000 44.54 8,400,000 13.21
4,628,000 5.75 1,964,000 3.32 1,575,000 1.50 2,340,000 3.68
80,548,000 100.00 59,228,000 100.00 104,995,000 100.00 63,579,000 100.00
342,000 0.42 1,417,000 2.39 208,000 0.20 2,863,000 4.50
26,643,000 33.08 17,377,000 29.34 19,336,000 18.42 17,797,000 27.99
15,029,000 18.66 9,789,000 16.53 10,522,000 10.02 9,958,000 15.66
48,000 0.06 149,000 0.25 - - 143,000 0.22
1,321,000 1.64 502,000 0.85 2,834,000 2.70 1,292,000 2.03
- - 1,160,000 1.96 24,000 0.02 1,624,000 2.55
43,383,000 53.86 30,394,000 51.32 32,924,000 31.36 33,677,000 52.95
7,882,000 9.79 3,377,000 5.70 25,808,000 24.58 6,555,000 10.31
1,000 - 192,000 0.32 - - 205,000 0.32
579,000 0.72 967,000 1.64 419,000 0.40 1,456,000 2.31
51,845,000 64.37 34,930,000 58.98 59,151,000 56.34 41,893,000 65.89
28,703,000 35.63 24,298,000 41.02 45,844,000 43.66 21,686,000 34.11
80,548,000 100.00 59,228,000 100.00 104,995,000 100.00 63,579,000 100.00
196,891,000 100.00 157,576,000 100.00 166,995,000 100.00 167,692,000 100.00
169,615,000 86.15 131,050,000 83.17 127,879,000 76.58 140,924,000 84.04
27,276,000 13.85 26,526,000 16.83 39,116,000 23.42 26,768,000 15.96
19,628,000 9.97 19,684,000 12.49 23,141,000 13.86 18,703,000 11.15
7,648,000 3.88 6,842,000 4.34 15,975,000 9.56 8,065,000 4.81
(752,000) (0.38) 24,000 0.02 1,131,000 0.68 234,000 0.14
8,400,000 4.26 6,818,000 4.32 14,844,000 8.88 7,831,000 4.67
90,000 0.05 440,000 0.28 123,000 0.07 450,000 0.27
8,310,000 4.21 6,378,000 4.04 14,721,000 8.81 7,381,000 4.40
39MOSS ADAMS 2019 Construction Financial Analysis Report SPECIALTY TRAdE CoNTRACToRS / More Than $50 Million
(*) National dollar figures obtained from the Construction Financial Managment Association’s annual financial survey. (-) Category not applicable for respondents.
With Annual Revenue of
REGIONAL RESPONDENTS BY TYPE
2018 2019
Current Assets
Current Liabilities
The extent to which current assets are available to pay current liabilities.
Typically, a company with a current ratio of 1.2 or greater is considered solvent by credit grantors.
Income Before Taxes
Total Equity
Indicates the profit generated by the net assets employed. This ratio reflects the stockholders’ ROI and is stated as a percentage. A high ratio may indicate an undercapitalized situation or a very profitable company.
A contractor should strive to obtain a return of at least 15%.
Total Liabilities
Total Equity
Indicates the relationship between capital contributed by creditors and owners.
Generally, a ratio of 2.5 or lower is considered acceptable.
RETURN ON EQUITY (%)
60
55
50
45
40
35
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
DEBT TO EQUITY
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
CURRENT RATIO
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
1 .5
2017 2018 2019
Contract Revenue/12
Indicates the average number of months it will take to complete all signed or committed work.
Gross Profit
Contract Revenue
Contract Revenue
Total Equity
Indicates the level of revenue being supported by each dollar of equity.
Generally, a ratio of 15 or less is considered acceptable.
GROSS PROFIT (%)
30
25
20
15
10
5
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
REVENUE TO EQUITY
18
15
12
9
6
3
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
MONTHS IN BACKLOG
24
22
20
18
16
14
12
10
8
6
4
2
0 R EG I O N A L AV E R AG E N AT I O N A L AV E R AG E
11 .1
11 .3
6 .1
6 .5
6 .6
6 .9
1 5
.5 3
1 3
.8 5
2 3
.4 2
1 6
.1 5
1 6
.8 3
1 5
.9 6
5 .2
6 .9
3 .6
6 .7
6 .5
7. 7
2017 2018 2019
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Contents
Introduction