Research Guides: Finance: Industry Ratios

Industry Codes

To use some sources you will need a NAICS or SIC code for your industry.

North American Industry Classification System
The NAIC System assigns numerical codes to industries from two to six digits. Shorter codes represent broader industry sectors. Be sure to read the full description of the NAICS code, as it may include a broader array of products/services than you might assume.

Standard Industrial Classification Manual (at OSHA site)
The SIC system assigns numerical codes to industries from two to four digits. Shorter codes represent broader industry sectors. Be sure to read the full description of the SIC code, as it often includes a broader array of products/services than you might assume.

Industry Ratios & Benchmarks - Electronic Sources

RMA eStatement Studies This link opens in a new window
The online version of the RMA Annual Statement Studies includes financial ratio benchmarks, as well as industry default probabilities and cash flow measures. Statistics are derived from data submitted by bank members of the Risk Management Association. The data comes from more than 260,000 statements of public and private companies, but the vast majority are from small to medium sized non-public companies. Covers over 700 industries arranged by NAICS and usually also by assets/sales size. Some data is presented in medians/quartiles. There are subsets of data by U.S. region and four years of data from past editions. Detailed explanations of the ratios can be found under the tab About eStatement Studies (much of the documentation is behind links in the left column of the about page). There are also some useful FAQs at the RMA site.

SME Benchmarking Tool - Industry Canada
Based on tax data on Canadian businesses, "SME Benchmarking Tool provides access to industry averages for income statement and balance sheet items, financial ratios and information on profitability for small and medium-sized businesses." Organized by NAICS code.
First Research Industry Reports
Briefer than S&P Industry Surveys, but may include some industries not covered by S&P. Also, may address some issues not easily found such as HR issues for the industry, description of marketing in the industry, some benchmarking figures. Access via ProQuest. Sort the reports by date, as many of the reports are older.
Industry Snapshot - 2012 U.S. Economic Census
An industry snapshot will show at a national level, by NAICS industry code, the total receipts, receipts per establishment, receipts per paid employee, receipts per $ of payroll, receipts per capita (U.S. resident population), annual payroll per employee, and establishments per million residents.

Industry Ratios & Benchmarks - Paper Sources @ EMU Library

Industry Norms and Key Business Ratios
Data is derived from Dun and Bradstreet’s large database of financial statements for public and private companies. Uses SIC system to organize data on 800 industries. Sometimes breaks down data by asset size. Data is available under four digit SIC code for some but not all industries; for some industries data is available only at the two digit level.
Current year is on Reserve Reference at the Circulation Desk: HF 5681 .R25 I525x

*You will need to read explanatory materials in front/back of volumes to understand these numbers.

Almanac of Business and Industrial Financial Ratios by Leo Troy
“Performance data is derived from the latest available IRS figures on U.S. and international companies, and tracks 50 operating and financial factors in 192 industries” arranged by NAICS. Breaks down data by company size (based on assets). Because IRS data is used, it may be more representative of absolute averages than the other sources, but it is less current and the industry categories are broad.
EMU Library 1st Flr Reference Stacks: REF HF 5681.R25 T68
RMA Annual Statement Studies for current year, see RMA eStatement Studies Above
Statistics are derived from data submitted by bank members of the Risk Management Association. Covers 600 industries arranged by NAICS and sometimes by assets/sales size. Some data presented in medians/quartiles. Note your prof might call this Robert Morris Associates (an old name for the source). The introductory pages of the source can help you better understand the RMA information. Paper subscription stopped after 2009 ed. On Reserve at the Circulation Desk: HF 5681 .B2 R6x

Research Advice - PLEASE READ

These sources provide ratios and financial norms commonly used in evaluating corporate financial performance within specific industries. Data varies from source to source due to different data sources, company size breakdowns, industry classification systems, and which factors are analyzed.

RMA is the most popular of these sources, but it doesn't include every industry. If your industry isn't included in RMA, you might want to try Industry Norms and Key Business Ratios, which is also a high quality source--unfortunately, we only have this in print form at the library. SME Benchmarking Tool and First Research Reports have less information--but they may include industries not in the other sources.

You may need to first find a NAICS or SIC industry code to use these sources.

*You will need to read explanatory materials at web sites to understand these numbers.

Understanding Ratios

Business Ratios and Formulas by Steven M. Bragg
Publication Date: 2012
A complete appraisal of analytical tools available to managers to assess performance. A thorough list of every ratio and formula, and how to compile and interpret that information.