TPA Arlington 2022 Slide Deck

Overhead

• The ratio of indirect costs (including labor) to direct labor cost • Can include bonus expense – useful to measure including and excluding • Data below excludes bonus expense from calculation Overhead = Total payroll exps+G&A overhead+Indirect Labor Cost Direct Labor Cost

Survey Median Very High Profit Firm Median 165% 177% 162% Fast Growth Firm Median

2018 2019 2020 2021 2022

167% 164% 159% 144% 165%

THE PRINCIPALS ACADEMY 2022

125

Made with FlippingBook Annual report