INDUSTRY FINANCIAL RATIOS Online since 1996 for student, investor and professional research. Click below to view
or select industry financial ratios:
Industry Ratios Sample - Sample Report
Industry Ratios Analysis - Conduct Analysis
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 financial ratios can reveal much about an industry. However, there are several
points to keep in mind about ratios. First, they 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, industry analysis utilizing ratios 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, financial ratios are meaningful only when they are
compared with some standard, such as another industry trend, ratio trend, 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.
Financial Statement Analysis
Provides information on financial statement analysis especially drawing ratio analysis to
explain financial circumstances.
Ratio Analysis
A financial ratio helps investors in analysis of financial health of the company and forms
the basis on which investments are planned. Lets look at some of the widely used
rations for analysis of various aspects related to financial health of the company.
Current Ratio
Current Ratio tells us the current financial strength of the company, primarily in terms of
the cash and credit standing of the company. It answers questions like ‘Is the company
spending too much or is it holding too much cash back?
Current Ratio = Current Assets / Current Liabilities
Debt to Equity Ratio
Debt to Equity ratio tells us the amount of debt of the company against the
shareholders equity
Debt to Equity ratio = Total Liabilities / Total Shareholders Equity
Asset Turnover Ratio
The ratio tells us the kind of revenue that is generated using the total assets of the
company It is an indicator on performance of the assets, whether they under
performing or over performing.
Asset Turnover Ratio = Sales / Average Total Assets
Interest Coverage Ratio
The ratio tells us the amount of earnings that company holds to make interest payments
of its debt.
Interest Coverage ratio = Income Before Interest and Income Tax Expenses / Interest
Expense
Inventory Turn Ratio
The ratio tells us how many times a business turns its inventory over a period of time. It
indicates if the company has most of its assets tied up in inventory and if they are under
performing.
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventories
Operating Profit Margin Ratio
The ratio tells us the operating efficiency of the company. The percentage of profit it
makes after deduction of its operating expenses.
Operating Profit Margin Ratio = Net Income – Operating Expenses / Total Sales
Quick Test Ratio
Investors widely use the Quick Test Ratio to arrive at the liquidity strength of the
company and its overall financial standing.
Quick ratio = Quick Assets / Current Liabilities
INDUSTRY ANALYSIS: One Industry
GREAT FEATURE: To find the meaning or usage of any term, just click on the term to
enter the Glossary.
Industry analysis ratios allow comparison of one time period to another within the
industry or to another industry or company.. Since industry analysis ratios look at
relationships inside the industry, an industry of one size can be directly compared to a
second industry (or a collection of industries) which may be larger or smaller or even in
a different business. Industry Analysis is a method of comparison not dependent on the
size of the industry. Financial Ratios provide a broader basis for comparison than do raw
numbers. However, financial analysis ratios on their own, without year-to-year or other
industry comparative ratios, are of little use in judging the health or future of the
industry being analyzed. Your Industry Financial Analysis provides you with 28
conversions of financial numbers for an industry into ratios and two predictors of the
future: Altman Z-Score and Sustainable Growth Rate.
Industry Analysis: SIC Code 3571: ELECTRONIC COMPUTERS
3571
TERM(Click Term for
Glossary)
Net Sales in $M
Last Year
3571
3571
3571
3571
Last Year - Last Year - Last Year - Last Year 1
2
3
4
3,906.3
3,297.9
3,329.3
3,587.4
3,464.5
Altman Z-Score
2.41
2.03
2.85
4.49
4.04
Sustainable Growth Rate
19%
6%
15%
22%
27%
15.7
85.2
29.1
40.3
28.7
27.6%
24.7%
27.1%
26.1%
27.1%
PREDICTOR RATIOS:
PROFITABILITY RATIOS:
P/E Ratio
Gross Profit Margin on
Sales
Net Profit Margin (Pre-tax)
8.6%
4.9%
7.1%
9.8%
12.0%
5.5%
0.9%
4.7%
6.6%
7.5%
85.2%
96.3%
94.0%
92.4%
90.1%
Operating Profit to Sales
14.8%
3.7%
6.0%
7.6%
9.9%
Basic Earning Power
9.6%
5.1%
7.7%
11.3%
14.1%
Return on Assets (Aftertax)
6.1%
2.3%
5.4%
7.5%
8.8%
Return on Equity
19.2%
7.4%
15.9%
22.5%
27.1%
75.1
85.3
90.3
85.9
82.9
77.9
85.6
84.2
89.5
85.2
28.0
20.8
15.9
16.7
16.9
28.0
24.5
17.7
15.8
16.8
Days Inventory
13.1
17.6
23.0
21.9
21.6
Working Capital Turnover
10.5
8.7
8.4
8.2
10.1
Fixed Asset Turnover
8.7
7.5
6.7
6.9
6.8
Total Asset Turnover
1.1
1.0
1.1
1.2
1.2
Current Ratio
1.3
1.3
1.3
1.4
1.3
Quick Ratio
1.2
1.2
1.2
1.2
1.2
Sales/Receivables
4.7
4.3
4.3
4.1
4.3
28.3%
34.9%
28.7%
31.6%
28.9%
Times Interest Earned
59.4
27.2
27.7
29.0
38.1
Equity Multiplier
3.1
3.3
2.9
3.0
3.1
Net Profit Margin (Aftertax)
Operating Expense to
Sales
ASSET MANAGEMENT RATIOS:
Collection Period (Period
Average)
Collection Period (Period
End)
Inventory Turns (Period
Average)
Inventory Turns (Period
End)
LIQUIDITY RATIOS:
Gearing Ratio
DEBT MANAGEMENT RATIOS:
Fixed Assets (net)/Net
Worth
0.40
0.45
0.47
0.49
0.53
Debt Ratio
0.7
0.7
0.7
0.7
0.7
Debt to Equity
2.1
2.3
1.9
2.0
2.1
Long-term-debt to Equity
0.4
0.5
0.4
0.5
0.4
56.7%
53.9%
58.9%
59.7%
63.0%
Current-debt to Total Debt
N/A: Data unavailable in order to calculate ratio
Z: Data equals zero in ratio denominator
PRIVATE HELD COMPANY Online since 1996 for student, investor and professional research. Click below to view or
select a financial statement analysis:
Financial Statement Analysis - Sample Report
Financial Analysis - Conduct Analysis
Your report is generated while you are on-line:
5 years of ratio analysis results, including latest filed quarter, taken directly from
the statement data provided by the analyst
Financial Ratio Analysis - 28 of the most useful financial ratios
Sustainable Growth Rate prediction
Altman Z Score potential for bankruptcy prediction
VentureLine tools for the analysis of financial statements can assist you in looking deep
within quarterly or annual financial statements, in any monetary currency, to determine
how well/poorly any enterprise or business has performed over the time periods in
question.
The information you submit is analyzed on a real-time basis. A printable report is
generated while you are on-line.
Your report provides you: Accounting Ratios (28 of the most useful ratios), Sustainable
Growth Rate, plus an "Altman Z Score" potential for bankruptcy analysis.
In assessing the significance of various financial data, experts engage in ratio analyses,
the process of determining and evaluating financial ratios. A financial ratio is a
relationship that indicates something about a company's activities, such as the ratio
between the company's current assets, current liabilities or between its accounts
receivable and its annual sales. The basic source for these ratiosare the company's
financial statements that contain figures on assets, liabilities, profits, or losses. Financial
ratios are only meaningful when compared with other information. Since they are most
often compared with industry data, ratios help an individual understand a company's
performance relative to that of competitors; they are often used to trace performance
over time.
Ratio analysis can reveal much about a company and its operations. However, there are
several points to keep in mind about ratios. First, financial statement ratios are "flags"
indicating areas of strength or weakness. One or even several ratios might be
misleading, but when combined with other knowledge of a company's management and
economic circumstances, ratio analysis can tell much about a corporation. 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 and on the
company's competitive strategy. Third, a ratio is meaningful only when it is compared
with some standard, such as an industry trend, ratio trend, a ratio trend for the specific
company being analyzed, or a stated management objective.
In trend analysis, financial ratios are compared over time, typically years. Year-to-year
comparisons can highlight trends, pointing to the need for action. Trend analysis works
best with five years of data.
The second type of ratio analysis, cross-sectional analysis, compares the ratios of two or
more companies in similar lines of business. One of the most popular forms of crosssectional analysis compares a company's financial ratios to industry ratio averages.
Your report containing the analysis of the financial statements 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.
Gain in-depth knowledge of the performance of any company. Order a Financial
Statement Analysis Report today.