The purpose of the project is to use resources available to obtain industry averages for commonly used ratios. Additionally, you will compare company ratio results to industry averages.
Don't use plagiarized sources. Get Your Custom Essay on
Just from $13/Page
- Obtain the four-digit primary SIC (Standard Industrial Classification) Code and industry title for your company. Record the primary SIC code and industry title at the top of the Ratio Analysis Worksheet.
- Obtain industry averages for commonly used ratios in the current period. Industry average information is reported by industry title or SIC code.
- Look up the following industry-average ratios:
Gross profit margin
Times interest earned
Accounts receivable turnover
Return on Sales
Return on Assets
Return on Equity
Note that some industry averages may not apply to your company.