Privately held companies appear to be relatively stable and strong, as indicated by their balance sheets and income statements, according to a new report from Sageworks, a provider of data on private companies.
[IMGCAP(1)]Financial statements with year-ends from the past year show that businesses are growing sales at an annual rate of 8 percent, a rate that, despite being slightly lower than a year ago, indicates strong revenue growth. Private companies are also experiencing higher net profit margins, of nearly 8 percent, in the most recent period, compared to previous years
A financial statement analysis of major sectors reveals similar trends of stability and strength for the retail, wholesale, construction and manufacturing industries.
“Private companies in the United States are continuing to grow at a healthy rate and maintain their net profit margins,” said Sageworks chairman Brian Hamilton. “Sales are growing at approximately 8 percent over the previous year, and net margins rose to approximately 7.8 percent, which is very positive.”
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