The 2015 Am Law 100: Rich and Richer
It's been a surprisingly strong year for many of the nation's top-grossing firms, buoyed by the recovering U.S. economy and robust transactional and tech markets. There's a new No. 1 at the top of The Am Law 100. Gross revenue, revenue per lawyer, profits per partner and other metrics—including a new profit measure we introduce this year—showed solid gains overall; some firms saw double-digit increases in those measures. Growth at several firms was superficial (achieved, for example, by adding lawyers, which boosts revenue). Still, the richest firms got even richer.
FEATURES & ANALYSIS
How we report law firm financials.
BY THE NUMBERS
A look at four key metrics of law firm economics: profitability, profit margin, leverage and value per lawyer.
Profits Per Partner
Average profits per partner were up by 5.3 percent in 2014, surpassing 2013’s increase of 0.2 percent.
The metric that we’ve long regarded as the most reliable measure of a firm’s financial health increased by 3.7 percent at Am Law 100 firms in 2014, reversing a decline of 0.4 percent in 2013.
On average, value per lawyer for The Am Law 100 rose by 6.2 percent in 2014.
Eighty-three firms posted increases, compared with 61 the previous year. Twenty-three firms posted double-digit gains, while two posted double-digit losses.