New study will help builders get into nuts and bolts of business.
Builders now have an opportunity to see how their business stacks up against the competition.
The National Association of Home Builders The National Association of Home Builders (NAHB) is one of the largest trade associations in the United States. Headquartered in Washington, DC, the association organizes one of the largest conventions in North America, The International Builders' Show, which draws more than (NAHB NAHB National Association of Home Builders
NAHB National Academy of Health and Business (Canada) ) recently released the Cost of Doing Business Study, a national study of builders' business practices and financial performance.
Available through BuilderBooks, NAHB's book publishing book publishing. The term publishing means, in the broadest sense, making something publicly known. Usually it refers to the issuing of printed materials, such as books, magazines, periodicals, and the like. division, this unique resource gives home builders a rare glimpse at other builders' financial books by providing data about profitability, cost of sales and expenses from hundreds of home builders across the country.
More than 350 NAHB builder members participated in the survey by providing their 2004 financial data. The latest edition of the study provides builders with an opportunity to evaluate their financial performance against the industry as a whole as well as against their own business goals.
Builders can see how they measure up against industry-wide averages in areas including: Gross margin net profit; cost of goods sold Cost of goods sold
The total cost of buying raw materials, and paying for all the factors that go into producing finished goods.
cost of goods sold ; financial ratios (current ratio, debt-to-equity ratio debt-to-equity ratio
The relationship between long-term funds provided by creditors and funds provided by owners. A firm's debt-to-equity ratio is calculated by dividing long-term debt by owners' equity. Both items are shown on the balance sheet. , and more).
The Cost of Doing Business Study contains a wealth of data, analysis and guidance to help builders boost profitability, increase efficiency, set realistic budget targets and improve upon their business practices. Several categories are analyzed in the survey (volume, operation type, and land vs. no land) making it easy for builders to compare their performance against the data.