Sageworks, Inc. released its Private Company Indicator, which provides data on profit and sales trends of privately held companies in the United States. With the release of this indicator, private company financial trend information is being made available to the public for the first time, the company says.

“Private companies represent over half of GDP and over 65% of new job creation in the United States, so this data is critical to understanding the macroeconomic picture in this country,” says Brian Hamilton, CEO of Sageworks.

Because there are no public reporting requirements for private companies, information on the current state of this substantial segment of the economy has been largely unavailable. Sageworks aggregates approximately 1,000 financial statements per day in a cooperative data model with financial institutions and accounting firms. This proprietary database is updated daily to include statements that were aggregated the previous day. Each metric’s monthly data point represents the trailing three-month average for all privately held companies in Sageworks’ database.


[This article was posted on July 2, 2012, on the website of ABA Banking Journal, www.ababj.com.]         

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