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Sageworks Blog


Lending, net income soar to new heights, so why not profitability?

The American Bankers Association released a statement on the FDIC’s second quarter bank earnings report last week, and results were very promising for the health of the economy. Bank lending hit a new milestone of $8 trillion, and net income soared to near-record highs; however, profitability continues to lag for the banking industry. [More]


Breakeven analysis - when can you start making money

For a Chief Financial Officer of a company, profitability is sure to be front-of-mind. Even if you have a great product and are generating consistent sales, many business owners and key decision makers can find themselves surprised that their business is still not making them any money.

According to the US Small Business Administration, breakeven analysis is a great tool to determine the point at which your business is generating revenue at least equal to expenses. Any additional revenue can at this point be considered profit. It is critical if you are just starting your business to identify and incorporate startup costs into this calculus, as initial upfront investments can be significant and will affect net sales revenue needed to break even.


Basel III Capital Rules: Delay is a victory for community banks

The new proposed capital and liquidity requirements from Basel III pose a major threat to the survival and profitability of community banks, according to Edgar Ortiz, President and CEO of Strategic Analytic Solutions LLC. In part 1 of this guest column, Ortiz provides insight into how the delay of the Basel III rules was a victory for community banks across the country. [More]


Private automobile dealers’ margins thin vs. other industries

U.S. auto dealers recently reiterated earlier complaints they had over manufacturer requirements to upgrade their showrooms and other facilities, and new financial data from Sageworks Inc., a financial information company, may shed some light on their concerns. [More]


Sageworks’ private company report released for January

Sageworks’ monthly report on the state of privately held companies in America, released today, shows that private companies in the United States continued to increase sales and improve their net profit margins in the period ending in January 2013. [More]


Private companies boost margins despite modest inflation

Private-companies in the U.S. this year are more profitable now than at any point in the last decade despite slowing sales growth, according to a preliminary analysis of data from Sageworks. Their increasing profitability is impressive given the modest inflation seen at the producer level in recent years, as measured by the Producer Price Index. [More]


Credit analysis benefits of a probability of default analysis

Financial institutions may inject a probability of default (PD) analysis into several steps of their credit risk processes, and each use-case provides a different benefit to the bank that directly impacts its workflow efficiency, credit decision quality, and most likely profitability. [More]


Housing supply chain: Loggers’ sales improve but profitability slips

Privately held logging companies have experienced healthy sales increases amid encouraging signs in the U.S. housing market, but their profit margins are weakening, according to preliminary estimates by Sageworks. [More]


Factors that affect small business credit

Many small private businesses are finding it challenging to access financial resources for growth at a time when lenders are still cautious and facing pressure to avoid risky loans. Many businesses already know this, because they have seen their borrowing requests rejected by a lender. Others may be considering starting a loan application and want to ensure the business is best prepared to receive an approval. [More]


Run a better bank: 4 Key steps to build a staffing model

This guest post by John Owens and David Harrop, founders of BCI Financial Services Consulting, summarizes their presentation on how to improve productivity and efficiency through benchmarking and staffing models. Run A Better Bank: Using Productivity & Efficiency Metrics to Improve Profitability was the most recent webinar in Sageworks’ 2012 webinar series. The series is an offering of free, educational webinars led by consultants and leaders in the banking industry who share best practices for financial institutions. [More]