The net profit margin for the typical residential remodeler increased to 5.3 percent in 2015, up from 3 percent four years before.
NAHB Eye on Housing says that a new report, Remodelers’ Cost of Doing Business Study: 2017 Edition, found that residential remodelers had a gross profit of $515,000, 28.9 of revenue, in 2015. The remodelers earned $1.8 million in revenue on average, and $1.3 million was used to pay for labor, material, and subs.
In 2015, residential remodelers reported total assets averaging $414,000 on their balance sheets. About $279,000 (67.5%) of that was backed up by liabilities and the remaining $135,000 (32.5%) was held as owner’s equity.
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