Industry insights and figures Legal and accounting activities

Operating margin
30.8 %
▲ +26.2pp
2020
Companies
1223781
2020

Key insights Legal and accounting activities

Actionable signals from current data
EU27_2020
Average operating result: 30.8% of revenue (2020).
Personnel costs: 34.6% of revenue (2020).
Number of companies: 1,223,781 (2020).

Sector outlook Legal and accounting activities

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Legal and accounting activities sector across EU27 average comprises approximately 1,223,781 enterprises employing about 2,000,000 people and generating €260.0 bn in net turnover in 2020. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a robust operating margin of 30.8% of revenue in 2020, the sector reports €80.0 bn of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

The Legal and accounting activities cost mix is reasonably balanced: cost of revenue at 34.6%, personnel at 34.6% and energy at – of turnover. Without a single dominant cost driver, margin management requires attention across the full operating envelope rather than focus on any one line.

Trend & trajectory

Over the period 2011 to 2020 the operating margin moved from 33.9% to 30.8% (-3.1 percentage points), a deteriorating trajectory that warrants attention. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Legal and accounting activities

Sector average % of revenue
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Cost structure for Legal and accounting activities in EU27_2020, 2011 to 2020, expressed as percentage of revenue.
Revenue / costs 2011 2012 2013 2014 2016 2017 2018 2019 2020
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 33.4% 34.0% 34.5% 34.1% 34.8% 33.3% 34.6% 34.6%
Gross wages 25.8% 26.2% 26.5% 26.3% 26.1% 26.9% 26.9%
Social and pension contributions 7.5% 7.8% 8.0% 7.8% 7.4% 7.6% 7.7% 7.7%
Other costs 32.8% 33.6% 33.5% 33.0% 33.5% 60.8% 34.6%
Gross operating surplus (EBITDA) 33.9% 32.3% 32.0% 32.9% 31.7% 31.2% 32.0% 4.6% 30.8%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 9 years

Sector average % of revenue
Average
29.1%
Peak
33.85%
2011
Low
4.62%
2019
Latest
30.77%
2020

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Legal and accounting activities (2020)

Recommended next steps

Based on the latest available data for Legal and accounting activities