Finance

 

Norms and Ratios



When starting a business or comparing a company's performance to competitors in its industry, you will need sample financial statements, also known as “industry norms” or “operating ratios”. Data for typical operating items such as assets, debt, sales, profit, labor, advertising, rent, and insurance expense, as well as other financial ratios may be found in the sources listed below. These figures are published by industry groups, banks, and trade associations for use as benchmarks. They are compiled by analyzing the financial statements of companies in that particular industry and calculating the mean or average figure for selected categories.

gold triangeCompany Ratios

gold triangeIndustry Ratios

gold triangeCalculate and Interpret Ratios, Using Books

gold triangeCalculate and Interpret Ratios, Using Websites


 


Company Ratios

 

 


  • Only for Baker studentsLexis Nexis
    At the opening screen, you will already be in the Company Dossier screen.
      1. Type the name of your company in the company name box.
      2. When a list of choices comes up, select your company.
      3. From the Reports column on the left, under: Financials, select: Overview

        LexisNexis_Financials

4.  Scroll down until you reach the category, Ratio Analysis
Lexis Nexis Ratios



3.  From the tabs along the top, select: Financials Dashboard

BIG_Financials_Dashboard

4.  From the tabs, select: Ratios

BCRC_Ratios

5.  Scroll through to see a long list of ratios.

BCRC_Ratios_list

 


Industry Ratios

 

 


  • Free web sites BizStats.com
        BizStats is an online source for small business statistics. Provides instant access to useful financial ratios, business statistics and benchmarks.
  • Free web sites Business census.gov
      Based on information from the Economic Census.
  • Free web sites Damodaran Online
    A professor from the Stern Business School at NYU has provided a wealthy website with numerous files. Among them, he has provided a chart service, comparing company and industry ratios. Make sure you are on the Data Page:  Select Updated Data from the navigation column.
  • Free web sites Economic Census: Concentration Ratios
      All of these reports classify industries by the percent of output accounted for by the largest 4, 8, 20 and 50 companies.
  • Free web sites Google Finance
      Features a nicely displayed wide array of industry ratios. Look up a particular company, then the data for the company and the industry are posted side by side.

 


Calculate and Interpret Ratios, Using Books

 

 


The sources listed below give definitions or explain how ratios are calculated and how they can be used to analyze the financial health of a business or industry. Slide your mouse over the book jacket for more info. Click on it to see the catalog entry.

Building Financial Models Business Ratios and Formulas Edgar Online Guide to Decoding Financial Statements
Lender's Toolkit Smart Financial Management


 


Calculate and Interpret Ratios, Using Websites

 

 


  • Free web sitesbiz/ed
    If you only check out one site, this is the ONE!
      These ratio analysis materials were prepared for Biz/ed by Duncan Williamson, a teacher, a freelance author and business consultant who prepares teaching/learning materials for accountants and students of accounting.
  • Free web sites Dun and Bradstreet
      Fourteen Key Business Ratios Used by D&B.
  • Free web sitesFinancial Accounting Standards Board
      The Financial Accounting Standards Board (FASB) has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports that are officially recognized as authoritative by the Securities and Exchange Commission.
  • Free web sites Investopedia
      A Forbes Media company that provides clear definitions and tutorials for calculating a variety of financial ratios.
  • Free web sites Motley Fool
      A privately-held multi-media company that is a top provider of investment advice and financial information.
  • Free web sites Planware
      PlanWare is one of many software packages for business and financial planning applications. Even though it is a fee based program, the site offers some helpful charts and information.
  • Free web sitesStudy Finance
      studyfinance.com is the web site for students of introductory finance at The University of Arizona. It is designed to serve as a starting point to learn about what finance majors do, how to get started in a finance career, and the finance curriculum at The U of A.