Ratios: Comparing Your Business to Others
The purpose of calculating industry ratios (or averages) is to evaluate your chosen company's strengths and weaknesses as compared to those of competing businesses in that industry. The Sawyer Library subscribes to several resources which provide these ratios, some are electronic, and some are in print. The ratios are arranged by either Standard Industrial Classification (SIC) or North American Industry Classification System (NAICS) codes.
- Dun & Bradstreet's D&B Key Business Ratios, online product.This source covers the widest range of industries, as defined by SIC code. Performance ratios are grouped by performance—solvency, efficiency, and profitability, and broken down into median figures, with upper and lower quartiles. Figures are based on data derived from over one million financial statements from public and private companies. The online product also has a worksheet to enable users to calculate ratios using existing financial information.
- Dun & Bradstreet's Industry Norms and Key Business RatiosREF Desk HF 5681 .R25 I525
This is the print version of the D&B Key Business Ratios. It advertises itself as covering "over 800 lines of business." - RMA Annual Statement Studies (Robert Morris)REF Desk HF 5681 .B2 R6
The print publication provides "common-size" balance sheets and income statements, and 16 financial and operating ratios, for over 500 lines of business, by company size groups. Although it is organized by SIC code, the appropriate NAICS number(s) are also listed. - Almanac of Business and Industrial Financial RatiosREF Desk HF5681 .R25 T861
Also known as Troy's Almanac. This source is organized by the North American Industry Classification System (NAICS), instead of the Standard Industrial Classification (SIC). An appendix provides a translation between the NAICS and SIC codes. 192 industries are covered. Performance averages are broken down by 12 categories based on asset size. Each industry is described by fifty performance indicators, which are based on tax returns. - Standard and Poor's NetAdvantage: Industry SurveysAlthough Standard and Poor's does not provide industry averages, the Comparative Company Analysis section of each survey does provide profit-, balance sheet-, and equity ratios for specific companies, which can be downloaded into Excel (choose "Downloadable Company Data," from the left side bar of the appropriate Industry Survey.
- Business & Company Resource CenterThe financials tab (activated when viewing a choice from the results of a company search) in Business & Company Resource Center includes the option to compare ratios (as well as income statements, balance sheets, and cash flow) between a group of major competitors.
- Value Line Research CenterIn addition to specific company and stock information, Value Line Survey Issues provide a one page Industry Commentary of each industry covered by Value Line. These commentaries frequently include a chart of retrospective and estimated composite statistics, such as the Average Annual P/E Ratio. The online Value Line Survey is the PDF equivalent of the print version. Upon entering the site, choose "Standard Edition."
- Value Line (print version)REF Desk HG4501 .V26
