High-profit US equipment dealers are generating three times the return on assets (ROA) of others in the market, according to new industry research.
The Associated Equipment Distributors' (AED) Cost of Doing Business/Profit Opportunity 2004 report shows high-profit dealers, defined as the top 25% of companies, generated 9.7% ROA in 2003, compared to median dealers, which achieved only 2.7% ROA.
The report based its conclusions on the pre-tax return-on-assets results of dealers across the US.
The full report, available now from the AED, breaks down the research by business segment (parts, rental and service), region and market segment, such as businesses specialising in above- and below-100-horsepower machines.