3 Numbers Reveal the State of Top UK Firms' Financial Health
An auditor analysis of the top 50 U.K. firms' limited liability partnership accounts offers us some insight into their efficiency and progress.
July 01, 2020 at 01:00 AM
4 minute read
The original version of this story was published on The American Lawyer
Accounting is sometimes derided for being more of an art than a science. Law firm accounting can be even more creative.
Firms can easily manipulate their average profits per equity partner by limiting the number of full equity partners and by including or excluding partners who left midyear, depending on what helps their figure most. And revenue growth offers little insight as to whether a firm has won more premium mandates, hired in more partners or simply received a large payment for a long-running piece of work.
But if we were investors in these firms, we would want the numbers to tell us whether they were becoming more efficient, whether they had improved their internal systems, and how financially prudent they were being.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Trending Stories
- 1First Lawsuit Filed Alleging Contraceptive Depo-Provera Caused Brain Tumor
- 2BD Settles Thousands of Bard Hernia Mesh Lawsuits
- 3The Law Firm Disrupted: For Big Law Names, Shorter is Sweeter
- 4The Growing Tension—And Opportunity—in Big Law Nonequity Tiers
- 5The 'Biden Effect' on Senior Attorneys: Should I Stay or Should I Go?
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250