TBA Law Blog


Posted by: Paul Burch on Feb 12, 2024

The Thomson Reuters Law Firm Financial Index reports that law firms ended 2023 on strong financial footing after a sluggish start. According to Reuters, the index tracks key financial metrics across 173 large and midsize law firms. Fueled largely by rate growth and increased demand for countercyclical work, profits rose year-over-year among both large and midsize law firms in the fourth quarter. Profits-per-equity partner jumped 6% among Am Law 100 firms, 2.5% among Am Law 200 firms and 0.3% for midsize firms. Overall, law firm demand was up nearly 2% year-over-year, but varies significantly by practice area. Lawyer productivity, however, continued its recent slide, with lawyers billing an average 115 hours per month in the fourth quarter of 2023. That is the lowest figure since at least 2005, according to the index.