Private Businesses See Strong Revenue Growth

The state of privately held companies appears to be relatively stable and strong, looking at their performance as shown in balance sheets and income statements. Statements ended in the past year show that businesses are growing sales at an annual rate of 8 percent, a rate that, despite being slightly lower than a year ago, indicates strong revenue growth.

May. 12, 2014

Privately held companies in the U.S. are gaining strength and stability, according to their performance as shown in balance sheets and income statements. Statements ended in the past year show that businesses are growing sales at an annual rate of 8 percent, a rate that, despite being slightly lower than a year ago, indicates strong revenue growth.

This is according to data in the latest Sageworks Private Company Report, a quarterly update on the health of American private companies and small businesses.

Privately held businesses are also seeing higher net profit margins in the most recent period, at nearly 8 percent, than in previous years. A financial statement analysis of major sectors reveals similar trends of stability and strength for the retail, wholesale, construction and manufacturing industries. Sageworks Chairman Brian Hamilton remarked that the report was, on the whole, “very positive.”

The significance of Accounts Payable (AP) Days, as well as other measurements of a business’s cash conversion cycle, is explored in this quarter’s “In Focus” section. A list of sub-sectors with the lowest average AP Days, is also included in this section, with several health care and service industries leading the way.

Sageworks releases a quarterly update on the health of privately held companies in the United States. It includes metrics on the average U.S. privately held company, as well as the performance of notable sectors and industries. Private companies drive nearly 50 percent of private nonfarm GDP and 65 percent of new job creation in the United States; private-company financial performance as measured in this report is an essential gauge of the overall U.S. economy.

The full report is available on the Sageworks website,