Friday, August 22, 2014

The Strong Side of Private

Publicly traded companies have been doing pretty well lately, but according to a new study from Sageworks, private companies are doing even better. For the 12 months ended on August 14, revenue growth at public companies averaged 2.6 percent. But revenue at private companies averaged a whopping 10.7 percent.

It's been like that for a few years now. Over the prior three 12-month periods, public company revenue growth rates were 4.5 percent, 3.4 percent,  and 2.7 percent. But those at private companies were 16.2 percent, 17.7 percent, and 10.6 percent.

But don't make the mistake of thinking that's the natural course of things, the private companies always out-earn public ones. During the recession, it was the opposite. For the 12 months ended August 14, 2010, public companies showed sales growth of 1.2 percent - while private companies' sales were dropping by 0.6 percent.

No comments:

Post a Comment