Profitability of law firms has become an increasingly important factor in a hotly competitive lateral market, but there is no simple way to judge the true financial health of firms in terms of profitability metrics.
As 2011 financial results trickle in, some of the state’s largest law firms have felt their profit margins being squeezed, though that doesn’t always equate to profits per equity partner (PPP) shrinking. But as the spread between the highest- and lowest-paid equity partners continues to expand, the PPP average is not as telling either.
