Construction Financial Management Association Releases New Financial Benchmarking Data for the Industry
October 11, 2016
Princeton, NJ — The Construction Financial Management Association (CFMA) announces the results of its 2016 Construction Financial Benchmarker Online Questionnaire. The 2016 Benchmarker Questionnaire was distributed to approximately 8,000 firms including CFMA member construction firms, non-member construction firms, as well as member CPA firms who represent both member and non-member construction companies (mostly employed by U.S. and Canadian construction companies). Responses were received in early 2016 and nearly 900 companies submitted detailed financial statements and data for the Benchmarker Questionnaire.
The Construction Financial Benchmarker at www.financialbenchmarker.com is CFMA’s online tool that allows users to compare their companies’ financial performance with the Benchmarker Questionnaire results. With flexibility in selecting benchmarks and easy data entry, the financial results include graphic presentations of key financial data going back to 2013.
CFMA Vice Chairman, Samantha Hutchison, CCIFP, notes: “As a long time participant of CFMA’s Benchmarker Questionnaire, I find the Construction Financial Benchmarker to be a very useful tool to compare our corporate trends, year-over-year, to the industry average. This helps our management team evaluate areas where we are on track, and areas to focus our strategic efforts for improvement to become Best in Class!”
CFMA’s Benchmarker Questionnaire is confidential and unique to the industry and all results, accessible through CFMA’s Benchmarker tool, are presented in composite form, segmented by type of construction work performed, region, revenues, and financial performance and provide critical benchmarking data and financial information about the construction industry.
For all companies, key findings in the newly released data show that Return on Assets jumped form 6.9% in FY2014 to 9% in FY2015, while Return on Equity also increased from 19% in FY2014 to 25.3% in FY2015. Gross profits for all companies increased from 13.1% in FY2014 to 15% in FY2015. Average days in A/R jumped to 55.2 for FY2015, a slight increase from 53.8 in FY2014 and average days in A/P declined from 35.6 days in FY2014 to 33.4 days in FY2015.
Five different report options featuring interactive comparisons of a company’s financials vs. participant performance, more than 20 key financial ratios, and historical data all make CFMA’s Benchmarker the key to knowing how a company compares by accessing the data that details the industry.
CFMA, headquartered in Princeton, NJ, is an individual membership organization and the only association dedicated to bringing together construction financial professionals and those partners serving their unique needs. CFMA provides invaluable resources and education to its more than 7,500 members via the headquarters office and 94 chapters across North America. CFMA promotes industry best practices and continuing education in support of its mission: To be essential to the growth and success of construction financial professionals. Visit www.cfma.org for more information.