Business Ratios and FormulasRatios are used to measure the financial strengths and weaknesses of companies or industries.
Ratios are based on data found in balance sheets, income statements, and sometimes share prices.
The sources listed here will provide you with either company ratios or industry ratios.
Image Source: Katrina Tuliao. CC-BY-2.0. Wikimedia Commons.
Compiling comparison ratios from Mergent Online:
1. Under Company Search, type in your company's name.
2. Click on the company name to pen the profile.
3. Select the blue Report Builder tab.
4. Select Comparison Reports link (under blue tabs).
5. Choose Peer Comparison--NAIC, SIC, MIC, Worldwide, Target Country.
6. Select Comparison Reports (under blue tabs).
7. Choose Comparison Report (top 10, 25, etc).
8. Choose Report Type (List by Item, List by Company, Active Companies Only)
9. Click on the + by Ratios
10. Highlight, then move (with arrow >) each ratio you want into the Report Items box.
11. Click Include Average box if you want industry averages to be included.
12. Select years. Ctrl-click for multiple years.
13. Select a Format (excel, html, etc), Click Create Report.