Industry insights and figures Legal and accounting activities

Operating margin
48.0 %
▲ +1.1pp
2020
Companies
298187
2020

Key insights Legal and accounting activities

Actionable signals from current data
IT
Average operating result: 48.0% of revenue (2020).
Personnel costs: 14.9% of revenue (2020).
Number of companies: 298,187 (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 Italy comprises approximately 298,187 enterprises employing about 177,981 people and generating €34.4 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 48.0% of revenue in 2020, the sector reports €16.5 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 32.9%, personnel at 14.9% 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 2008 to 2020 the operating margin moved from 53.7% to 48.0% (-5.7 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 IT, 2008 to 2020, expressed as percentage of revenue.
Revenue / costs 2008 2009 2010 2011 2012 2013 2014 2015 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% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 14.5% 14.6% 16.4% 14.9% 15.8% 16.0% 15.8% 15.5% 15.6% 15.5% 15.5% 15.5% 14.9%
Gross wages 10.5% 10.9% 12.1% 10.8% 11.6% 11.7% 11.5% 11.4% 11.5% 11.5% 11.4% 11.4% 11.0%
Social and pension contributions 4.0% 3.7% 4.3% 4.0% 4.2% 4.3% 4.3% 4.1% 4.1% 4.0% 4.1% 4.2% 4.0%
Other costs 31.8% 41.5% 31.5% 28.1% 31.8% 31.7% 31.3% 32.0% 31.8% 31.5% 31.7% 37.5% 37.1%
Gross operating surplus (EBITDA) 53.7% 43.8% 52.1% 57.0% 52.4% 52.3% 52.8% 52.5% 52.7% 53.0% 52.8% 47.0% 48.0%

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

Operating result over 13 years

Sector average % of revenue
Average
51.5%
Peak
57.04%
2011
Low
43.83%
2009
Latest
48.01%
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