Financial Industry Averages (1 Viewer)

[akadaka22]

does anyone know the most recent or up-to-date industry averages for financial ratios??

 

[believeagain]

It depends on the industry, and it can vary greatly.
For example, the airline industry is a highly capital intensive industry, which makes the Solvency ratio seem low compared to other industries.

 

[ajay12]

It depends on the industry, and it can vary greatly.
For example, the airline industry is a highly capital intensive industry, which makes the Solvency ratio seem low compared to other industries.

Profitability is low in the airline industry as well.

 

[dontworry]

I dont think you would have to know what they are? if you needed to compare im sure they would supply it in the question.

 

[Eddykungfu]

Yep, I asked my teacher the same thing - he said ALWAYS use the statistice provided for comparison.

+ HOWEVER, If there are no industry norms added, use the following:

Industry Standards
Current Ratio = 2:1

Expenses Ratio - (As Low as Possible)

Return On Owners Equity - COmpare to a 3-4% Bank savings account.

Debt To Equity Ratio - 1:1 (Solvency).

Accounts REceivable Turnover Ratio, 30 days.