Spotlight On: Profitability Ratios
Return on assets took a huge drop in 2020, according to the SEFA Interactive Dashboard. Overall ROA declined from 1.4% in 2019 to 0.7% in 2020. ROA remained flat for captives and independents, but banks saw a steep decline. Check out the SEFA Interactive Dashboard in ELFA’s new Knowledge Hub at www.elfaonline.org/interactivesefa
Participate in the 2022 Compensation Survey—And Get the Results for Free
The ELFA Small and Medium Enterprise Compensation Survey is back! We are collecting salary data from small or medium sized (below $500 Million in NBV) organizations. Please contact Bill Choi (email@example.com
) if you are interested in participating.
Mild Growth Continues
After its strongest growth in over a decade in 2021 and solid performance in Q1, equipment and software investment growth of 4.2% is forecast for 2022. Annual U.S. GDP growth for 2022 is forecast at 2.8% due to a strong labor market and robust housing growth.
Source: Q2 2022 Equipment Leasing & Finance U.S. Economic Outlook
The equipment finance industry fared better than originally feared during the pandemic due to government programs like the Paycheck Protection Program and high portfolio performance, which helped minimize delinquency and defaults.
Source: Foundation Study, Equipment Finance Funding, Securitization & Syndication: Best Practices for Today and Tomorrow