iCFO Finsights

AI dominated headlines. New tools. Automation. Predictions about which industries would win and lose.  But the updated 2025 iCFO data revealed a quieter story.  Some of the industries showing improving profitability were not obvious AI beneficiaries at all. While attention focused on disruption, a number of traditional industries quietly improved across Return on Assets (ROA), Return on Sales (ROS), and Return on Investment […]

As we finalized our newest benchmark release reflecting 2025 performance data across more than 1 million U.S. businesses and 2,500+ industries, we expected gradual shifts.  Instead, several patterns genuinely surprised us. Here are a few that stood out.  1.   Some professional service industries suddenly became much stronger  Several professional service categories showed meaningful improvements in earnings power — a […]

Between 2022 and 2025, several professional service industries showed substantial deterioration in traditional profitability metrics. Return on Sales and Return on Assets both fell sharply across sectors — a pattern consistent with rising labor and overhead costs, pricing pressure, and the normalization of unusually strong post-pandemic conditions.  But a different picture emerges when the same businesses are […]

Across industries, revenue is clearly moving higher. Based on iCFO’s firm-level data across 2,600+ industries — cross-referenced against U.S. Bureau of Economic Analysis output trends — the typical business today is operating at a noticeably higher revenue level than just a few years ago.  But firm-level benchmarks reveal something more important: the increase in revenue has not translated into stronger returns. Yet […]

Sales per Employee is one of the most commonly used productivity benchmarks — and one of the most misleading. A cattle feedlot generates nearly $1 million in revenue per employee. A gas station does $368K. On paper, both look like high-output operations. In reality, one keeps $1,500 per employee in profit and the other keeps $341.  A more telling metric is how much of each revenue dollar […]

Profitability is often seen as a signal of growth potential.  But industry data tells a different story.  In some sectors, businesses generate exceptionally strong returns, yet struggle to translate those earnings into meaningful growth.  Using Return on Asset Investment (ROAI) — a measure of operating earnings relative to permanent capital — alongside Sustainable Growth Rate (SGR), a clear pattern emerges.  👉 strong profitability 👉 limited ability to reinvest for […]

Growth usually comes with a tradeoff. In most industries, expanding the business means raising capital, increasing leverage, or diluting ownership. But in some sectors, firms generate enough internal earnings to scale without it.  Using Sustainable Growth Rate (SGR) — the rate at which a business can grow while maintaining its existing capital structure — a small group of industries […]

The conventional assumption is that businesses have to choose: chase high returns or maintain a strong balance sheet. Benchmarking data across 1M+ U.S. private companies shows that in several sectors, that tradeoff simply does not exist.  Certain industries consistently combine strong earnings power with solid liquidity — producing a financial profile that is both high-performing and resilient. For advisors, these […]

Some of the most profitable businesses in the U.S. would struggle to survive a bad month.  Industry benchmarking consistently reveals a pattern across several sectors: strong earnings power coexisting with current ratios that leave almost no buffer against disruption. These businesses are not mismanaged — their liquidity profiles are structural. But for advisors and investors, […]

When a mortgage broker shows 13x leverage on their balance sheet, is that a red flag — or just Tuesday?  The answer depends entirely on the industry. In some sectors, elevated debt is a structural feature of how businesses operate, scale, and generate returns. In others, the same ratio is a genuine warning sign. Knowing the […]

Benchmarking often surfaces something that surprises clients: within the same industry, the most successful firms don’t just outperform the median — they generate dramatically more earnings power, often by a factor of three, five, or more.  The metric that makes this visible is Return on Asset Investment (ROAI), developed by Dr. Robert W. Pricer of the University of Wisconsin–Madison School of Business […]

Benchmarking often surfaces something that surprises clients: within the same industry, the most successful firms don’t just outperform the median — they generate dramatically more earnings power, often by a factor of three, five, or more.  The metric that makes this visible is Return on Asset Investment (ROAI), developed by Dr. Robert W. Pricer of the University of Wisconsin–Madison School of Business […]

One of the most consistent patterns in our dataset of 1M+ U.S. companies is how asset efficiency changes as businesses mature.  Across many industries, younger firms (0–5 years) often show higher median Return on Assets than their mature peers (10+ years). But the reason is structural — not necessarily managerial.  Here are a few examples from our […]

When reviewing client financials, advisors often assume that strong profitability should naturally coincide with strong liquidity.  Our analysis of firm-level financial data from over 1 million U.S. businesses suggests otherwise.  Across industries, profitability and liquidity often diverge — and the differences are structural.  Below are selected examples where the patterns are economically consistent and meaningful.  […]

One of the most consistent patterns in our dataset of 1M+ U.S. companies is how asset efficiency changes as businesses mature.  Across many industries, younger firms (0–5 years) often show higher median Return on Assets than their mature peers (10+ years). But the reason is structural — not necessarily managerial.  Here are a few examples from our […]

Business advisors often hear: “Is our working capital healthy?”  The answer depends entirely on the industry.  Based on analysis of 1M+ U.S. companies in the iCFO database, median working capital ratios vary dramatically:  Industries with the Highest Working Capital:  Median ratios in these sectors range from 4.2 to nearly 9.0.  These organizations often operate with advance funding, reserves, and conservative balance sheets.  […]

Advisors are often asked whether a business’s profitability or asset efficiency looks “strong” or “weak.”  What’s frequently overlooked is how business size alone can dramatically change what “normal” looks like, even within the same industry.  To bring clarity to those conversations, we analyzed firm-level financial data from over 1 million U.S. businesses, focusing on how asset efficiency patterns shift as […]

Advisors are often asked whether a business’s liquidity position is “healthy.” The challenge is that liquidity norms vary dramatically by industry — and looking at raw ratios without context can be misleading.  To help ground those conversations, we analyzed firm-level financial data from over 1 million U.S. businesses to see how liquidity typically shows up across industries.  Below […]

CPAs and business advisors are often asked a deceptively simple question:  “Is this ROA good?”  The challenge is that ROA norms vary widely by industry and business model. Without the right peer context, even technically correct ratios can lead to misleading conclusions.  That’s why we recently launched iCFO Finsights, an ongoing insight series for business advisors built on firm-level financial data from over 1 […]