Private Company vs Industry Ratios
Financial Statement Ratio Analysis Sample - Click here for Sample Report
Your financial ratio analysis report is generated while you are on-line:
|Financial Ratio Analysis - 28 of the most useful financial ratios|
|Sustainable Growth Rate prediction|
|Altman Z Score potential for bankruptcy analysis and prediction|
|5 years of analyzed results taken directly from the Securities and Exchange Commission (SEC) database|
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Your MBA financial statement analysis tool assists you in looking deep within a quarterly or annual financial statement of a private company (in any monetary currency) to determine how well or poorly the selected company has performed as compared to a chosen industry over the time periods in question.
A comprehensive in-depth printable financial statement ratio analysis report is generated while you are on-line that gives you the critical information you need to make informed decisions.
This company to 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 a company is in its operations and use of assets.
- Liquidity Ratios which give a picture of a company's short term financial situation or solvency.
- Debt Management Ratios which show the extent that debt is used in a company's capital structure.
To properly judge how well a company or investment is performing it is imperative that the company or investment be compared to the performance of the industry in which it competes. The industry analysis performed herein provides the latest of data, usually less than 30 days old, for every industry within the public markets. Your ratio analysis of any industry is immediate and available for download or printing at will.
In assessing the significance of various industry financial data, experts engage in financial ratios analysis, the process of determining and evaluating financial ratios. A financial ratio is a relationship that indicates something about an industry's activities, such as the ratio between the industry's current assets and current liabilities or between its accounts receivable and its annual sales. The basic source for these ratios are the company financial statements within the industry that contain figures on assets, liabilities, profits, and losses. Industry ratios are only meaningful when compared with other information. Since individual companies are most often compared with industry data, ratios help an individual understand a company's performance relative to that of competitors and are often used to trace performance over time.
Ratio analysis can reveal much about an industry. However, there are several points to keep in mind about ratios. First, financial ratios are "flags" indicating areas of strength or weakness. One or even several ratios might be misleading, but when combined with other knowledge of an industry, ratio analysis can tell much about that industry. Second, there is no single correct value for a ratio. The observation that the value of a particular ratio is too high, too low, or just right depends on the perspective of the analyst. Third, a financial ratio is meaningful only when it is compared with some standard, such as another industry trend, ratio trend, a ratio trend for the specific industry being analyzed..
In trend analysis, 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), 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.