One way to measure how well a company is performing is to compare its financial ratios with the average ratios of its industry peers. There are three print sources that do this quite well. All are listed below, and the most current editions are located at the reference desk on the fourth floor. The first two books are organized by SIC code and give some of the more commonly used financial ratios. The third books is organized by NAICS.
- Almanac of business and industrial financial ratios
Englewood Cliffs, N.J. : Prentice-Hall, 2004.
Ref. HF5681.R25 A45 Ref Desk
- Industry norms and key business ratios
Murray Hill, NJ : Dun & Bradstreet Information Services, 2003.
Ref. HF5681.R25 I533x Ref Desk
- RMA annual statement studies
Philadelphia : Robert Morris Associates, 1977-
Ref. HF5681.B2 R6 Ref Desk
Similar information can be found in Research Insight, which is a database that is available only on Alden Library computers. This database is very powerful, but it is also quite complex. A tutorial on using Research Insight is available at http://www.library.ohiou.edu/electres/databases/rsiguide.
Two other online databases can be used to compare the financial ratios of different companies. Mergent Online allows you to do an advanced search for companies with the same SIC code and then create a comparison report. There are a number of different ratios that can be used as comparison criteria when creating this user-defined report. The report that is created can be exported into a Microsoft Excel format.
Market Insight allows a user to look at comparisons of companies that are in the same peer group. To find this comparison, simply do a Company search for your company’s ticker symbol. When the company information is loaded, there should be a link on the left side of the screen for “Peer Group”. This will compare some basic finacial information of companies in the same industry. While the information won’t be as in-depth as data from the sources above, it may be a little easier to retrieve and comprehend.
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