Industry Ratios Analysis
INDUSTRY FINANCIAL RATIOS - Online since 1996 for student, investor and professional research. Click below to view or select industry financial ratios:
Industry Ratios Sample - Click here to view Sample Report
|5 most recent years of analyzed results, including latest filed quarter, taken directly from the Securities and Exchange Commission (SEC) database|
|Financial Ratios - 28 of the most useful ratios|
|Sustainable Growth Rate prediction provides insight into the future|
|Altman Z Score potential for bankruptcy prediction|
Industry financial ratios provides the best methodology to judge how well a company or investment is performing. In evaluating any investment it is imperative that the company or investment be compared to the performance of the industry in which it competes. VentureLine provides the latest of data, less than 30 days old, for every industry within the public market. Your industry financial ratios analysis is immediate and available for download or printing at will.
Industry accounting ratios can reveal much about the performance of an industry. However, there are important points to keep in mind about ratios: they are "flags" indicating areas of strength or weakness. One or even several ratios might be misleading, but when combined with other indicators of an industry, industry analysis utilizing ratios can speak volumes about that industry. Be minful, there is no single correct value for a ratio. The belief that the value of a particular ratio is too high, too low, or just right depends on the mind-set of the analyst. Finally, financial ratios are meaningful only when they are compared with a set standard, i.e. another industry trend or a ratio trend for the specific sector being analyzed.
In industry analysis, using trends, industry ratios are compared over time, typically years. Year-to-year comparisons can highlight trends and point up the need for action. Trend analysis works best with five years of ratios.
The second type of ratio analysis, cross-sectional 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.
Your industry analysis report is broken down into the various ratio categories:
- Predictor Ratios indicate the potential for growth or failure.
- Profitability Ratios which use margin analysis and show the return on sales and capital employed.
- Asset Management Ratios which use turnover measures to show how efficient the companies within the sector perform in operations and use of assets.
- Liquidity Ratios which give a picture of an industry's short term financial situation or solvency.
- Debt Management Ratios which show the extent that debt is used in the sector's capital structure.