OPERATING COSTS
Low unemployment continues to create a competitive environment for qualified applicants and drives up recruiting costs. Investments in additional recruiters and marketing initiatives designed to reach applicants fueled an increase in operating costs. Total costs increased from 9.6% of revenue to 10.1%, with more than two-thirds of the cost being attributable to staff labor costs. We anticipate recruiting costs to remain high for 2019 and will continue to diligently manage ancillary costs to keep total costs within an acceptable range.
ASSETS AND LIQUIDITY
Elwood continues to maintain a strong asset base to fund working capital and investments in infrastructure. Total assets as of December 2018 were $164 million, and our ability to meet near-term obligations as measured by current ratio improved from 3.5 to 3.7. Technology continues to be the largest category of infrastructure investment. Ongoing investments in network security as well as launching an upgrade to our operating software platform were two major initiatives for 2018.
Operating Costs % of Revenue 10.4%
10.2% 9.6%
Operating Costs by Category Facilities 7.9%
10.1% Operations 10.9%
Recruiting & Selling 13.0% Labor 68.2%
2015
2016
2017
2018
Total Assets $ in Millions
Current Ratio
$178 $168
$164
4.3
$150 3.5
3.7
3.2
COMPLIANCE
Elwood is committed to operating in full compliance with all laws. To ensure we are complying with financial requirements, we engage the services of independent experts. Our financial statements are audited annually by Blue & Co., LLC. Income tax returns are prepared by Grant Thornton LLP.
2015
2016
2017
2018
2015
2016
2017
2018
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