Comparing Financial Ratios Between Industries Ratio analysis helps you determine how your business compares to others.
Where can I find industry and company financial ratios? Industry ratios are often useful when creating the financial components of a business plan. This article discusses several resources that can be used to find industry and company financial ratios.
With the exception of the Yahoo Industry Research Center, all resources listed below are subscription resources. If you are not affiliated with Ohio University, check with your local library for access, as many of these resources are commonly held subscriptions at academic and public libraries.
Larger companies and industries If you are researching larger companies and industries, you may find the resources below more useful than the ones above.
The resources below can be used to find ratios for individual companies, or for a list of companies in the same industry. In many cases the resource may also give industry averages. If industry averages are not included in a particular resource, then you could take an average from a list of companies with the same NAICS or SIC code.
There are a number of different ratios that can be used as comparison criteria when creating this user-defined report. The report that is created can be exported into a Microsoft Excel format. Alternatively, you can use the Competitors Tab in Mergent to build a list of companies and compare their ratios.
Onesource Onesource is another good source for comparing financial ratios of companies in the same industry.
The data in Onesource will compare your company against the industry, against the sector, against the stock market as a whole. Yahoo Industry Center The Yahoo Industry Center is a wonderful free resource that has some excellent industry information. This database is very powerful, but it is also quite complex.
For more information about using research insight, take a look at this video on using Research Insight to find company ratios. Smaller companies and industries Bizminer Bizminer is one of the best resources available for benchmarking smaller companies against industry averages.
This video shows an example of how to find financial ratios in Bizminer. Industry ratio books If you are benchmarking a small, private company, or are looking to start a new company, the resources in this section would be most useful to you.
I recommend that you look at all three resources as they do not all cover the same industries. Also, when using the resources, make sure you are comparing similar sized companies.Comparing Financial Ratios Between Industries Ratio analysis helps you determine how your business compares to others.
Companies prepare financial statements to provide a deeper understanding of what is occurring in their business, both operationally and financially. Financial-ratio analysis performed throughout the year provides performance information during busy or slow seasons.
Financial ratios, averaged by industry, serve as a benchmark for comparison against individual companies and help users make informed investing and credit decisions.
|What is a 'Comparable Company Analysis - CCA'||More Resources Industry Financial Ratios and Financial Statements The following guide provides sources for industry financial ratios and financial statements for a wide range of industries, with information provided for each resource including the name of the source or publisher, a description of the resource's features, and any information that is available free online. Select from the following resources:|
|Public Company Financial Analysis vs. Industry Ratios||Cynthia Gaffney Analysts, company management and lenders use financial ratios to assess a firm's financial health and operational efficiency.|
The second type of ratio analysis (cross-sectional analysis), as in this analysis, compares a company's financial ratios to industry ratio averages.
Another popular forms of cross-sectional analysis compares the financial ratios of two or more companies in similar lines of business.
Perform a company financial analysis in order to see how a company is performing compared to earlier periods of time and other companies in its industry. A comparable company analysis (CCA) is a process used to evaluate the value of a company using the metrics of other businesses of similar size in the same industry.
This financial analysis course is perfect for any aspiring financial analysts working in investment banking, financial planning and analysis (FP&A), equity research, corporate development, and other areas of finance and accounting/5(25).