Financial ratios show the relationship of one item of a
company's financial statement to another item. They are used to
assess aspects of
profitability, solvency and liquidity.
Financial ratios for industries (or industry norms)
reflect the average value for the
type of business.
Financial ratios for companies are used by creditors and equity investors
to make credit and investment decisions. Industry norms are used by people who want
to compare one company's financial report with the industry
averages or by people who need to identify changes in the
industry's financial performance over several years.
Print resources are housed in the Business Library collection, basement of Wilson Library.
Finding General Industry Ratios or Industry Norms
The most useful general ratios are:
- eStatement Studies
The online version of the RMA Annual Statement Studies. The Annual Statement Studies are a source of composite performance metrics derived directly from the financial statements of financial institutions' borrowers and prospects. These financial statements come directly to RMA from its member institutions, which get their data straight from their customers. Includes Financial Ratio Benchmarks, Industry Default Probabilities and Cash Flow Measures, and individual NAICS downloads to Excel.
[Resource no longer available]
- Search for your industry by NAICS number or subject term. Choose the year and the region for which you need ratios.
- Need definitions of the financial ratios, or information on how they are calculated?
Use the RMA help pages.
- Key Business Ratios
Key Business Ratios, from Dun and Bradstreet, help you to assess how a business is doing compared to an industry or a competitor. The 14 key business ratios cover the critical areas of business performance --solvency, efficiency and profitability. They are broken down into median figures, with upper and lower quartiles. Ratios are arranged by Standard Industrial Classification (SIC) Codes -a four-digit number that classifies business establishments by defining the industries in which they do business.
See the next entry for the print version of these ratios.
You can choose whether you want general or more specific (solvency, efficiency, profitability) ratios, and you can search by line of business or SIC code.
- Need definitions of the financial ratios, or information on how they are calculated?
Use the Key Business Ratios help pages.
BizMiner offers industry financial analysis benchmarks for over 5,000 lines of business and industry market trends on thousands more. Their market analysis reports are available at the national and local levels down to the zip code. Bizminer is a great resource to use when developing business plans, or for any sort of entrepreneurship initiatives where you need to measure peer performance in an industry.
- Go to the BizMiner financial ratios page:
- ALMANAC OF BUSINESS AND INDUSTRIAL FINANCIAL RATIOS.
Englewood Cliffs, NJ:
WILS BUS Quarto HF5681 .R25 A45
The source of data is tax returns filed with the U. S. Internal Revenue Service.
The most recent edition provides data
on millions of U.S. corporations. It
50 performance indicators for each industry, and at
the end of each industry
section, performance indicators for the
last 10 years are shown. Data are grouped
into 13 categories by size of assets in each
industry. About 180 lines of business
provides norms in actual dollar
amounts for revenue and capital factors such as
net receivables, inventories, total
assets, and it gives you important average
operating costs in percent of net sales
for: cost of operations, pensions and benefits,
compensation of officers, wages
and salaries, taxes and more. We have been receiving the
annual editions of the Almanac
- INDUSTRY NORMS AND KEY BUSINESS RATIOS.
New York, NY: Dun & Bradstreet. Annual.
WILS BUS Quarto HF5681 .R25 I5
This five volume set contains the most comprehensive industry
over 800 lines of business). The volumes
in the set are: 1) Agriculture, Mining,
Transportation, Communication, Utilities; 2) Manufacturing;
Wholesaling; 4) Retailing; 5) Finance, Insurance, Real
Ratios are arranged by SIC number, and
sub-divided into four geographic areas of the U. S. (at the
and into three to five asset size ranges (at the
four digit level).
For each SIC number covered, the following
data is provided: 1) fourteen key business ratios that can be
used to analyze
solvency, efficiency and profitability, 2)
typical balance sheets and income
statements for the industry
(in dollars), and 3) common-size financial figures
of the financial statement as a percentage of its respective
aggregate total). The source of data is the Dun & Bradstreet
We have been receiving the annual volumes in this set in the
Library since 1979.
- IRS CORPORATE FINANCIAL RATIOS.
Schonfeld and Associates. Annual.
WILS BUS Quarto HF5681 .R25 I27x
These industry ratios
are based on the most recently available
income statement and balance sheet data
compiled by the
Internal Revenue Service of the United States Department of the
Treasury. There are 79 ratios or averages given for each industry. We have been
receiving this annual publication in the Library regularly since 1991.
Other General Ratios
- RMA ANNUAL STATEMENT STUDIES.
Philadelphia, PA: Risk Management Association.
WILS BUS Quarto HF5681 .B2 R6
This publication is a product of the
commercial banking community and RMA (now Risk Management Association, formerly Robert
Morris Associates), the
association of lending and credit risk professionals.
Over 500 lines of business are
covered. Current and comparative
historical data are included. Financial statements on
each industry are
shown in common size form. Sixteen widely used
business ratios follow the financial
Each RMA Annual Statement
Studies volume has a
section at the front of the volume that gives good definitions
of each of the ratios and shows how each was computed. Each
volume also has a section at the back called *Sources
Composite Financial Data--A Bibliography* that identifies other
major sources of composite financial data for industries. We have been
the RMA annual volumes in the Library since 1927.
- Cost of Capital
Provides industry financial information relating to revenues, profitability, equity returns, ratios, capital structure, cost of equity and weighted average cost of capital. Arranged by SIC code. Provides data on over 300 U S based industries. The main provider of data for Cost of Capital is the Standard & Poors Compustat Data.
Location(s): TC Wilson Library Business Reference Quarto HC110.C3 C67 Non-Circulating
Check MNCAT Record for Location and Availability http://prime2.oit.umn.edu:1701/primo_library/libweb/action/display.do?fn=display&vid=TWINCITIES&doc=umn_aleph003229188
- S&P Capital IQ NetAdvantage
Overviews, rankings and comparative statistics for major industries that provides detailed information on public companies such as stock reports, bonds, stock valuation annual reports, and other detailed fianancial statistics. NetAdvantage also includes investment services such as the advisory newsletter Outlook and screening directories for stocks, bonds and mutual funds. There are also directories for private companies and the Register of Corporations, Directors, and Executives
- IBIS World
IBIS World provides independent, accurate, comprehensive, and up to date research on over 700 industries, including statistics, analysis and forecasts. Includes global industry reports. While traditional ratios do not appear in the database, IBIS does offer a variety of statistical measures of the industry: Executive Summary,
Industry Performance, and
Do It Yourself! Produce your own ratios--
- Global Financial Data
The Global Financial Database is a collection of financial and economic data provided in ASCII or Excel format. There are 20,000 historical or current data series which may be downloaded directly from the web site. Global coverage includes stocks, bonds, treasury bills, interest rates, commodity prices, CPI, GDP, exchange rates, indexes, population and more.
Looking for Financial Ratios for a specific company (not the industry)? Type the company name in the search box, bring up the main screen for the corporation, then look for the Ratios tab at the top right of the screen.
Financial and directory information for 50 million companies worldwide. Includes private and public companies in Europe, Asia, Africa, Latin America, and North America.
- Do a company search. Then look for financial ratios and peer analyses links or tabs.
Can be used with Internet Explorer ONLY, other browsers do not work. Please allow pop-ups, as this is necessary for proper display. Thomson ONE brings together company information from a variety of sources that are produced by Thomson Reuters. This includes company financials and filings, mergers and acquisition data and analyst reports. The following types of information are available: Company Overviews, Company News and Pricecharts, Corporate Governance (Takeover defense), Corporate financial fundamentals, Estimates (and earnings surprises), Debt overview, Company deals, Share ownership information, Company research (formerly Investext), Company financial filings, Officers and Directors.
- Ratios are on the companies overview page.
- CD-ROM databases you can use are:
- CompactD SEC
CompactD SEC provides reports on publicly held companies. Company profiles include descriptions, address, state of incorporation, stock exchange, ticker symbol, primary and secondary SIC codes, number of shareholders, number of shares outstanding, number of employees, etc. The bulk of each report is comprised of financial information taken from the quarterly and annual financial statements including key ratios, and summary stock price, ownership and dividend figures with previous 5 year comparison data. Data is compiled from SEC filings. Because the same format is used on all the disks, you can use them to get a series of statistical data on corporations in the U.S. from the 1980s through 2003. CDROM is only available on Business Reference workstations.
Location(s): WILSON Business Reference CDROM Workstation
Definitions of Ratios: What does it all mean?
- Worldscope Disclosure
Worldscope Disclosure is the companion database to Compact D/SEC covering international markets. Worldscope Disclosure provides similar information as that described for Compact D/SEC but for publicly-held companies trading on exchanges ouside the United States.
Location(s): WILSON Business Reference
Do you need to know
how the ratios are computed or what they can
be used to evaluate?
Information on how the ratios are
constructed and what they can be used
to measure are included in
the following sources:
- Check these:
of ratios appear at the front of each volume
of the RMA STATEMENT
STUDIES in the *Definition of Ratios*
section [WILS REF Quarto HF5681 .B R6]
and at the front of the
IRS CORPORATE FINANCIAL RATIOS
[WILS REF Quarto HF5681 .R25
Other books on ratio analysis and financial statement analysis include:
- Subramanyam, K. R.
Financial statement analysis / K.R. Subramanyam, John J. Wild. Boston : McGraw-Hill Irwin, c2009.
TC Wilson Library Reserve HF5681.B2 W4963 2009
[Contributor biographical information ]-- http://www.loc.gov/catdir/enhancements/fy0829/2008008981-b.html
[Publisher description ]-- http://www.loc.gov/catdir/enhancements/fy0829/2008008981-d.html
[Table of contents only ]-- http://www.loc.gov/catdir/enhancements/fy0829/2008008981-t.html
Financial ratios : how to use financial ratios to maximise value and success for your business / Richard Bull.
Burlington, MA : Elsevier, c2008.
TC Wilson Library HF5681.R25 B85 2008 Regular Loan
Palepu, Krishna G., 1954-
Business analysis & valuation : using financial statements / Krishna G. Palepu, Paul M. Healy. Mason, OH : Thomson/South-Western, c2008.
TC Wilson Library Reserve Quarto HF5681.V3 P295 2008
Bragg, Steven M.
Financial analysis : a controller's guide / Steven M. Bragg. Hoboken, N.J. : John Wiley, c2007.
TC Wilson Library HG4026 .B663 2007
Fraser, Lyn M.
Understanding financial statements / Lyn M. Fraser, Aileen Ormiston. Upper Saddle River, N.J. : Pearson/Prentice Hall, c2007.
TC Wilson Library Reference HF5681.B2 F764 2007
[Table of contents ]-- http://www.loc.gov/catdir/toc/ecip066/2006000729.html
How to read and understand financial statements when you don't know what you are looking at / by Brian Kline. Ocala, Fla. : Atlantic Pub., c2007.
TC Wilson Library HF5681.B2 K555 2007
Stickney, Clyde P., 1944-
Financial reporting, financial statement analysis, and valuation : a strategic perspective / Clyde P. Stickney, Paul R. Brown, James M. Wahlen. Mason, OH : Thomson/South-Western, c2007.
TC Wilson Library HF5635 .S857 2007
Berman, Karen, 1962-
Financial intelligence : a manager's guide to knowing what the numbers really mean / Karen Berman and Joe Knight ; with John Case. Boston : Harvard Business School Press, c2006.
TC Wilson Library HG4028.B2 B422 2006
[Table of contents ]-- http://www.loc.gov/catdir/toc/ecip0518/2005025556.html
Peterson Drake, Pamela, 1954-
Analysis of financial statements / Pamela P. Peterson, Frank J. Fabozzi. Hoboken, N.J. : Wiley, c2006.
TC Wilson Library HG4026 .P463 2006
Reading financial reports for dummies / by Lita Epstein. Hoboken, NJ : Wiley Pub., c2005.
TC Wilson Library HF5681.B2 E67 2005
Kwok, Benny K. B.
Accounting irregularities in financial statements : a definitive guide for litigators, auditors, and fraud investigators / Benny K.B. Kwok. Aldershot, Hants, England ; Burlington, VT : Gower, c2005.
TC Wilson Library HF5686.C7 K85 2005
[Table of contents ]-- http://www.loc.gov/catdir/toc/ecip058/2005005509.html
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