What are the sources for obtaining industry norms to compare financial ratios? What limitation should the analyst be aware of when using industry comparisons?© BrainMass Inc. brainmass.com June 3, 2020, 11:11 pm ad1c9bdddf
There are a number of sources available to obtain industry norms for comparing financial ratios:
1. Dun and Bradstreet - computes 14 ratios for each of 125 lines of business (Published in Dun's Review and Key Business Ratios
2. Robert Morris Associates (An association of bank loan officers) - 16 ratios are computed for more than 300 lines of business and ...
The solution lists the 7 leading sources for obtaining industry norms to compare financial ratios. A brief discussion on the limitations of using the industry wide comparisons is also included.