Turning Data Into Action: Key Takeaways from the 2025 ASA Operating Performance Report

On July 23, I had the opportunity to present the results of the 2025 ASA Operating Performance Report (OPR) to the membership. This year’s report was based on responses from 116 organizations, and we were proud to once again deliver the findings by the end of May to support companies’ second-half planning efforts. The OPR remains a cornerstone benchmarking tool, providing critical insights into financial health, operational efficiency, and personnel productivity across the industry.
 

A key part of the session focused on the robust features of the ASA Business Intelligence Portal (asabusinessintelligence.com). In addition to the industry-wide report and customized performance reports for each participating company, respondents have access to a suite of interactive tools. These include an on-demand peer comparison tool, five-year trend graphs for 27 key metrics, and a Report Card feature that assigns performance grades (Weak to Strong) based on industry quartiles. These tools allow users to quickly identify strengths and weaknesses and target areas for operational improvement.
 

We discussed how to interpret and apply the report’s findings across five core areas: sales growth, profits, assets, debt, and people. Sales growth was the standout metric in 2021 and 2022, with increases of nearly 21% and 17%—among the highest ever recorded in the report’s 40+ year history. That pace was unsustainable, and growth slowed to under 2% in both 2023 and 2024. While this softening was expected, early results for 2025 suggest a more optimistic outlook, with many companies reporting year-to-date growth through June ranging from 0.3% to 11%, according to the ASA Monthly Sales Report.
 

Profitability showed similar signs of normalization. Net profit before tax as a percentage of sales dropped to 5.3%—a notable decline from peak levels, but still comfortably above the long-term average of 3.5%–4.5%. The message was clear: profitability continues to hinge on gross margin performance and effective expense management. High-performing firms consistently manage operating costs more efficiently—even during periods of revenue stagnation.
 

In the asset and debt components, we focused on how companies are using and financing their resources. Return on assets and return on net worth both declined for the third consecutive year, driven by a combination of margin pressure and modest revenue growth. Still, liquidity and leverage metrics remain strong. The average debt-to-equity ratio held below 70%, and the current ratio exceeded 3.0—indicating that most companies are well-positioned to meet both short- and long-term obligations.
 

The “people” metrics also stood out. Payroll as a percentage of net sales rose to 15.2%, as wage growth continued to outpace top-line gains. Sales per employee increased in nominal terms to $614,000 in 2024, up from $457,000 in 2017. However, when adjusted for inflation, the increase was just 7% over that period—highlighting the need to be cautious when using dollar-based productivity ratios during inflationary periods, as they can present a misleading picture of real performance.
 

Even those without a financial background can gain valuable insights from the report and the tools within the ASA Business Intelligence Portal. By focusing on Report Card metrics that significantly deviate from peer benchmarks, companies can better allocate resources, justify strategic decisions, and strengthen long-term performance. We encourage continued engagement with the OPR and look forward to helping ASA members turn data into action.
 

Written by: Greg Manns of Industry Insights