Wholesale / Distribution Compensation & Benefits Benchmarking Report 2012 Wholesale / Distribution Benchmarking Report | Page 13

2012

One way to gauge a company’s success is to divide prof after taxe by total a
y
fits
es
assets. The
percentage calculate is Return on Total Ass
ed
sets (ROTA ). The avera ROTA fo the past five
age
or
years is:
RET
TURN ON TO
OTAL ASSE
ETS (ROTA
A)

10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%

9.74%

9.22%
8.24%
%
6.30%
6
%
6.08%
5.99%

8.33%
2005

5
5.56%
2007
2009
2011

Under 50 em
mployees

Over 5 employee s
50

olesale/distributors have a measurement tool to utilize when
e
o
n
By calculating gross margin, who
sating emplo
oyees. From the graph below, you ca see how gross margin is broken
b
an
compens
down as a percentag of various compensat
ge
s
tion compon
nents:
RESPEC
CTIVE EXP
PENSE AS A PERCENT
TAGE OF GR
ROSS MAR
RGIN
39.46% 39
9.28%
40%
35%
30%
25%
Under 50 employees
20%

Over 50 employees

13.04%

15%
10%

6.03% 6.10%
%

7.21%
4.09%

5%

3.47
7%

0%
Compensatio
on

Benef
fits

Bonuses
B

o.,
SI
© Barnes Dennig & Co Ltd. and US Insurance

Commission

pa 10
age