INDUSTRY GROUPS
A Minor Industry Group corresponds roughly to a 4 digit Standard Industrial Classification
(SIC). Ratios for a Minor Industry Group are calculated from aggregate income statements
and balance sheets of companies within the Minor Industry.
A Major Industry Group is an aggregate of one or more Minor Industry Groups. The Major
Industry Groups correspond roughly to 2 digit SIC codes. Ratios for a Major Industry Group
are calculated from aggregate income statements and balance sheets of companies in the
Minor Industries which comprise the Major Industry Group.
A Division is an aggregate of one or more Major Industry Groups. The IRS defines twelve
Divisions. Ratios for a Division are calculated from the aggregate income statements and
balance sheets of companies in the Minor Industries which comprise the Major Industries
which comprise a Division.
SIZE CLASSES
Within each classification (Minor Industry, Major Industry, or Division) ratios are shown
for up to four corporation size classifications. These size classifications are based on
total assets and are defined as:
$ 1,000 to $ 999,999
$ 1 million to $ 24.999 million
$ 25 million to $ 99.999 million
$ 100 million or more
PROFIT AND LOSS
Within each size class and for all firms combined, companies are grouped into two sets:
(1) those firms that reported positive net income or profits and (2) those firms that
reported negative net income or losses. A complete array of financial ratios is provided
for each set of firms.
The underlying concept behind the splitting of profitable and unprofitable firms is to
highlight the financial performance ratios which distinguish successful and unsuccessful
firms within the industry size class.
TURNOVER RATIOS
All of the turnover ratios, with the exception of Inventory Cost Turns, are
computed by dividing sales by the balance sheet items whose turnover is being measured.
For example, Total Asset Turnover measures the productivity of a firm's capital assets and
the ability to generate revenues from its asset base.
EXPENSES PCT
The expenses percentages express the various types of expenses in terms of
percentage of sales.
COST OF OPER PCT
The cost of operations percentages express various types of costs in terms of
percentage of cost of sales and operations.
BAD DEBT & ALLOW PCT
The bad debt and allowance percentages express bad debts and allowances as
percentages of receivables and sales.
EMPLOYMENT PCT
The employment percentages express various costs of employment as percentages of
PBIT (Profit Before Interest and Tax).
PROFITABILITY PCT
The profitability percentages express a firm's profitability in a number of
different ways, from gross, operating and net margins to before and after tax return on
total assets.
TAXES PCT
Taxes percentages include the effective tax rate paid and tax credit usage.
INVESTMENT PCT
The investment percentages measure returns on equity, contributions to net income
and theoretical future growth rate.
LIQUIDITY RATIOS
The liquidity ratios measure a firm's ability to meet its obligations, average
numbers of days a firm holds a receivable or payable, average numbers of days of available
working capital or inventory, and value of inventory in relation to the cost of
production.
FIXED ASSETS PCT
The fixed assets percentages express the values of various assets as percentages
of sales as well as the yearly and total percentage of fixed assets consumed.
DEBT PCT
The debt percentages express payables, short term and long term debt in relation
to cash flow, current, tangible and total assets and liabilities as well as total debt.
NET WORTH PCT
The net worth percentages express profit, income, assets or liabilities in
relation to tangible net worth.
INT COVERAGE RATIOS
The interest coverage ratios measure how well a firm can meet its financial
obligations.
WORKING CAP PCT
The working capital percentages express working capital in terms of sales, net income,
inventories and short and long term debt.
MISCELLANEOUS
The base number of companies along with the mean assets and sales are given for each asset
size, profitability and industry class.
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