Step 4 - Industry Statistics
This section provides resources that contain composite or aggregate statistics. These are statistics that reflect numbers for an entire industry and not individual companies. For example, if you are interested in the computer hardware industry, you might want to find statistics such as the following:
- Number of computers should last year
- Dollar sales volume of computers for the last five years
- Number of people employed in the manufacture computers
Another important statistic is that for industry operating and financial ratios.SEE BELOW for information on industry ratios and norms and a list of resources containing industry norms and ratios.
Three groups of statistical resources will be covered in this section:
- Directories and services (see below)
- Trade associations
- United States Government sources, which includes:
Directories and Services (for composite statistics):
- The CRB commodity yearbookCall Number: Jones Ref (Latest Issue) HF1041 .C56 2015
What are financial ratios and why should I know about them?
A ratio is calculated by dividing one number by another number. Information you find on a company's financial statement can be used to calculate financial ratios that can be compared to industry norms. These ratios can also be used to compare a company with its competitors.
There are many different kinds of financial ratios. Ratios are traditionally grouped to represent five different aspects of business: asset turnover, leverage, liquidity, market value and profitability. The most common liquidity ratio is the current ratio. This can be calculated by dividing the company's current assets by its current liabilities.
For more information on calculating financial ratios and their use, see the following books in the Baylor Library:
- Techniques of Financial Analysis byCall Number: Moody General Collection HG4026 .H44 1997ISBN: 025614611X
- The Vest-Pocket Guide to Business Ratios byCall Number: Moody General Collection HF5681.R25 T975 1992ISBN: 0139519483
- How to Interpret Financial Statements for Better Business Decisions byCall Number: Moody General Collection HF5681.B2 M46 1991ISBN: 0814459404
- Key business ratios This link opens in a new window
Provides access to competitive benchmarking data featuring key business ratios for companies and industries.
- eStatement studies This link opens in a new windowProvides access to the online version of the Annual Statement Studies produced by the Risk Management Association (RMA). eStatement Studies provides composite performance metrics derived directly from the financial statements of financial institutions' borrowers and prospects. It includes Financial Ratios Benchmarks on over 760 industries, Industry Default Probabilities and Cash Flow Measures. Basic and Advanced search options are available. Searcheable by year, industry, assets, sales, fixed assets, long term debt, gross profit, etc.
Where can I find industry ratios and norms?
The following resources are the most common sources of industry norms and ratios:
- Industry norms and key business ratios, one year.Call Number: Jones Ref HF 5681 R25 I53x yr(Also available online in Key Business Ratios database)
- RMA annual statement studies.Call Number: Jones Info Desk HF 5681 B2 R6 yr.-yr.
- Almanac of business and industrial financial ratiosCall Number: Jones Ref HF 5681 R25 T68 yr.
- Financial studies of the small business.Call Number: Jones Ref (Latest Issue) HD2346.U5 F55a 2007
