Debut of the National Trucking Profitability Index

TruckAnswers has launched the National Trucking Profitability Index (NTPI), an important measuring rod for the trucking industry's overall financial health.

The NTPI is based largely on average fleet operating margin performance - the amount of operating revenue left over after all operating costs are deducted. This is typically the best measure of the industry's earning capacity.

But the NTPI also considers other financial metrics including:

• Debt to Equity Ratios - A lot debt on a fleet's balance sheet is an unhealthy sign since it diverts too much operating revenue to debt service and not into investments to help grow the business.
• Free Cash Flow - Also a good measure of profitability since it accounts for changes in working capital and can pick up on trends not apparent on income statements.
• Earnings Per Share - For publicly-traded companies, a measure of earnings performance.
• Dividends Paid - Also a guide to how much public companies are making every quarter.

The NTPI is updated quarterly and is available to all subscribers for free. Sign up below to receive email notifications of updates.

Sector-Specific Indexes

In addition to the main National Trucking Profitability Index, we are launching a series of sector-specific versions of the NTPI to factor in the unique profitability influences in different industry sectors. They include:

• One-Way Truckload - Fleets running irregular routes and relying heavily on the spot market for freight.

• Dedicated Truckload - Fleets with contracts to run dedicated routes for specific clients.
• Less-Than-Truckload - Long haul and regional fleets running specific routes whether a trailer is full or not.
• Intermodal - Container hauling between ports and inland warehouses or to rail terminals.
• Specialized - Fleets with loads requiring specialized equipment and or special treatment, including heavy haul.
• Package/Final Mile - Local delivery fleets with smaller vehicles and high number of stops/drops.

Sector-specific indexes are available to premium TruckAnswers members. Sign up below.

For more details on the components of the NTPI or if you are interested in participating in our private profitability benchmarking services, drop us a note at ntpi@truckanswers.com.