Service Companies Match Manufacturing Leaders in Finance Costs

Roth, Richard T.
May 1999
Financial Executive;May/Jun99, Vol. 15 Issue 3, p41
Academic Journal
This article discusses finance costs of manufacturing companies and service companies. Data compiled by Hackett Benchmarking shows that large service companies have brought their finance costs in line with comparable manufacturing firms. Both exhibit finance costs as 1.1% of revenue. Enterprise resource planning applications such as Oracle and PeopleSoft have helped, as has system standardization. However, service companies tend to have more employees per dollars in revenue than the manufacturing sector.


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