GERMANTOWN, Md. – Kaulkin Ginsberg Company’s market research team recently developed and released the KG Index with the goal of examining the effects of specific economic variables in the accounts receivable management (ARM) industry relative to a base period of Q4 2007. After statistical analysis of nearly three dozen economic variables, it was determined that consumer bankruptcy filings, retail sales, official unemployment rate and the home price index had the greatest level of statistical significance to the ARM industry.
When asked how the chosen economic variables related to the index, Michael Thomas, Director of Research, explained that the team “weighted these variables on the basis of their explanatory power following our statistical analysis of the industry on an annualized basis.” Mr. Thomas further explained that they “compared the correlation of our index with the annual revenue trend of the ARM industry over the same period to ensure this method aligns with revenue performance.”
Going forward, Kaulkin Ginsberg will release its index on a quarterly basis, typically two months after the previous quarter.
Click here to access the full index.
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