What is the Financial Benchmarker?
CFMA’s Financial Benchmarker allows a construction company or CPA firm to compare financial performance against the rest of the industry. First published by CFMA in 1989 as the “Annual Financial Survey” and continuing every year since 2013 the Financial Benchmarker became all-electronic.
Who is it for?
- Construction financial professionals
- General contractors
- CPA firms
The Construction Financial Benchmarker is for construction financial professionals who need to be able to evaluate their company’s performance and report on how it compares with the industry in regards to key ratios and interpretive commentary on liquidity, profitability, leverage, and efficiency. Also, general contractors can use the Financial Benchmarker as a prequalification tool for subcontractors, surety, and insurance.
Additionally, CPA firms can use this information to assist clients by providing “value-added” services in examining their client’s financial standing.
How can it help my company?
There are many ways that construction companies can use this information, such as:
- Compare your company's financial performance against the industry.
- See if your company outperforms, performs in line with, or falls short of industry financial averages.
- Take a deeper look into your operations to improve under-performing segments.
How to use it?
The Financial Benchmarker will help you conduct an analysis with an interactive, side-by-side comparison of your financials versus the industry benchmarks. The Construction Financial Benchmarker provides the data that details the industry with:
- Flexible, reliable, and immediate financial reports and in-depth analysis
- Key financial measurements so you can benchmark and evaluate your company’s performance
- Comparative charts and graphs perfect for high-powered presentations
One key element in any financial analysis is the comparison of financial ratios. The usefulness of financial ratios is increased as individual ratios are compared with each other over time. For instance, an analysis that explains a change in the current ratio over the past two years will be more useful to the reader than an explanation of the variance between that company's current ratio and a published industry average current ratio. The use of financial ratios can be an excellent tool in financial analysis; however, mere comparison to industry averages may have limited value.
The primary benefit of financial ratio analysis lies in determining the cause of changes in ratios over time. Industry averages of various ratios can be useful as a beginning benchmark for comparison purposes and as an indication of industry competition.
View sample reports