Firms that efficiently convert revenue into profit top our profitability index. These scores are based on the ratio of profits per partner to revenue per lawyer. The index seeks to demonstrate which firms most effectively balance leverage and overhead for the highest possible firm profits. On this chart, leverage is the ratio of all lawyers to equity partners; profit margin is the ratio of net income to gross revenue multiplied by 100.

For a more complete set of definitions, see A Guide to Our Methodology.

Rank Firm 2006 Profitability Index Leverage Profit Margin
1 Cadwalader 2.71 6.85 40
2 Cahill Gordon 2.54 3.97 64
3 Paul, Weiss 2.40 5.30 45
4 Wilson Elser 2.35 5.55 43
5 Dechert 2.23 4.85 46
(The American Lawyer, May 2006)