Editing Law firm (section)

=== Financial indicators ===
Three financial statistics are typically used to measure and rank law firms' performance:<ref>{{Cite web|url=http://www.americanbar.org/publications/law_practice_home/law_practice_archive/lpm_magazine_articles_v33_is4_an22.html|title=Profitability {{!}} Law Practice Division|website=www.americanbar.org|access-date=2017-03-13}}</ref>
* Profits per equity partner (PPEP or PPP): [[Earnings before interest and taxes|Net operating income]] divided by number of equity partners. High PPP is often correlated with prestige of a firm and its attractiveness to potential equity partners. However, the indicator is prone to manipulation by re-classifying less profitable partners as non-equity partners.
* Revenue per lawyer (RPL): [[Revenue|Gross revenue]] divided by number of lawyers. This statistic shows the revenue-generating ability of the firm's lawyers in general, but does not factor in the firm's expenses such as associate compensation and office overhead.
* Average compensation of partners (ACP): Total amount paid to equity and nonequity partners (i.e., net operating income plus nonequity partner compensation) divided by the total number of equity and nonequity partners. This results in a more inclusive statistic than PPP, but remains prone to manipulation by changing expense policies and re-classifying less profitable partners as associates.