be updated with FY2017. These results will be AOS. We project a decrease in all three measures as excellent results, combined with pending tax reform, prompted significant payouts of bonuses, and another profit sharing contribution. Given our cash retention philosophy, we created the Super Liquid Ratio (SLR) as a more stringent gauge of financial security. SLR is defined as cash on hand each month end divided by current monthly expenses (Figure 7.5-9) . Our SLR decreased from 2013 to 2015 as we used approximately $1M in cash to fund our office expansion, as well as our 25 th year celebration trip to Mackinac Island. The trend over recent years remains upward, however, with an increase of 26% in the SLR since 2014. 7.5a(2) Marketplace Performance The Management Consulting industry is hyper-fragmented and primarily consists of small, non-employing firms that service narrow geographic or niche markets. It is estimated that more than 80% of industry operators are non-employers, which indicates that there is space for niche companies to succeed in the industry. No company holds more than 5% of the market share because of the large array of needs of clients and range of potential consultants to choose from (Figure 7.5-10) . To capture market penetration in our leading sector, IPM counts the number of the Life Sciences firms in the top 10 in market capitalization that we have served (Figure 7.5-11) .
EBITDA
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
IPM EBITDA
IBISWorld Benchmark
Figure 7.5-5 EBITDA Figure 7.5-6 represents revenue by region. The table represents the percentage of revenue growth YOY. IPM's company revenue growth over the last five years has consistently exceeded revenue growth within the management consulting industry per the IBISWorld industry report.
Revenue by Region
Current Ratio
Central
Eastern
Western
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
YOY Growth %
FY 13
FY 14
FY 15 20%
FY 16 14%
FY 17 11%
Current Ratio
IBISWorld Benchmark
5% 3%
7% 5%
IPM
Linear ( Current Ratio)
3% 9%
3% 7%
4% 9%
IBISWorld SPI Mgmt. Consultancies
Figure 7.5-7 Current Rate
Figure 7.5-6 Revenue YOY Growth (Region) Most industries use the current ratio (Figure 7.5-7) and debt to equity (Figure 7.5-8) as indicators of financial leverage and strength. IPM’s 2016 current ratio was 267% higher than the IBISWorld industry benchmark, and IPM’s 2016 debt to equity ratio is a small fraction of the IBISWorld benchmark. The 2016 decrease in Current Ratio was due to an increase in current liabilities attributed to accruing larger 2016 company performance bonuses and accruing a profit sharing payout for the first time in 15 years. IPM's philosophy is to retain our earnings to fund future growth and not rely on external debt. This strategy focuses on financial strength, stability and longevity, consistent with our vision statement. Please note that IPM’s 2017 tax return is not finalized as of this application; therefore, Figures 7.5-5, 7.5-7, and 7.5-8 cannot
Debt-to-Equity
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Debt-to-Equity
IBISWorld Benchmark
Figure 7.5-8 Debt to Equity Ratio
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