The norms and ratios are classified by industry and asset
size so they can be used as benchmarking tools for assessing
the financial strength of a company to help you:
- Determine minimum acceptable levels of risk
- Analyze cash flow via profitability and collection periods
- Devise benchmarks to spot potential problem accounts
- Pinpoint profitability trends of a company compared to
an industry segment
- Make profitable merger and acquisition decisions
- Determine stability and volatility of new entries in
the market
- Identify most profitable market segments
- Gain in-depth knowledge of your customer base
Users can also enter in a company's specific financial statements
and create a comparative report.
The Industry Norms & Ratios will help you make decisions when
specific financials are not available on a particular business.
The business ratios are categorized into three families: solvency,
efficiency and profitability.
Solvency
- Quick Ratio
- Current Ratio
- Current Liabilities to Net Worth
- Current Liabilities to Inventory
- Total Liabilities to Net Worth
- Fixed Assets to Net Worth
Efficiency
- Collection Period
- Sales to Inventory
- Assets to Sales
- Sales to Net Working Capital
- Accounts Payable to Sales
Profitability
- Return to Sales
- Return to Assets
- Return on Net Worth
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