One source for financial ratios by industry is the RMA Annual Statement Studies Financial Ratio Benchmarks. Ratios are computed from Dun and Bradstreet’s large database of financial statements for public and private companies. Another key source of industry ratios is Dun & Bradstreet’s database of Key Business Ratios. Sixteen common ratios along with balance sheet and income statements for over 780 lines of business. Publishers gather data from the financial statements of hundreds of firms to calculate industry averages. Data varies from source to source due to different data sources, company size breakdowns, industry classification systems, and which factors are analyzed.
RMA and ValuSource have teamed up to offer you a reasonably priced license so that you can legally use RMA Annual Statement Studies data in your valuation reports. For each ratio in the traditional RMA Annual Statement Studies report, the Valuation Edition contains ten ratios and a standard deviation. Our RMA Annual Statement Studies™ Valuation Edition is the only database drawn from the RMA Annual Statement Studies data that is designed specifically to meet the needs of the valuation professional — and it is only available from ValuSource.
Ratios are broken out for companies in thirteen different asset size ranges. Ratios for over 800 lines of business published by Dun & Bradstreet.. Data comes in six groups of sales ranges for companies earning under one million to those earning over twenty-five million.
- And if you’re using Excel, you can download the data directly into Excel.
- You select the data points from the Financial Analysis Assumptions Sheet.
- To use some sources you will need a NAICS or SIC code for your industry.
- Conversely, if the subject business is improving, but the industry is improving more rapidly, then the value of the company should reflect that its performance is inferior to its industry.
- To find an industry’s NAICS code, you may visit the US Census Bureau’s NAICS resource page
- RMA and ValuSource have teamed up to offer you a reasonably priced license so that you can legally use RMA Annual Statement Studies data in your valuation reports.
Often they break out the results into categories based on the asset size of the companies. Be sure to read the full description of the SIC code, as it often includes a broader array of products/services than you might assume. Be sure to read the full description of the NAICS code, as it may include a broader array of products/services than you might assume. View list of how each ratio is calculated and “How to Interpret”.5. RMA provides five years worth of information in “FRB History”.2. Or, you may click the radio button for “Sort by NAICS”, if you know the NAICS code;4.
- For each ratio in the traditional RMA Annual Statement Studies report, the Valuation Edition contains ten ratios and a standard deviation.
- RMA is the most popular of these sources, but it doesn’t include every industry.
- Publishers gather data from the financial statements of hundreds of firms to calculate industry averages.
- RMA/ProSight ANNUAL STATEMENT STUDIES is an important resource for credit professionals, valuation specialists, and M&A dealmakers
- As an example, instead of saying your target company’s Operating Profit is 2% above industry average, you can say the target company is ranked at the 70 percentile.
- If you own ValuSource’s RMA Database, you can download RMA data into your Analysis file.
If you own ValuSource’s RMA Database, you can download RMA data into your Analysis file. Share sensitive information only on official, secure websites. And this level of benchmarking clarity adds credibility to your valuation reports. RMA data is broken down by Asset, Sales or historical data, region, and size range.
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Same respected source of industry benchmarks. If you want to cite RMA Annual Statement Studies data in your valuation reports, business plans, comparative reports, consultative engagement documents prepared for the benefit of a client, you MUST have a license agreement. The RMA Annual Statement Studies provide the ratios for different sizes companies. If you want to cite the RMA data in your valuation, business plans, etc., you must have a license.
The RMA Annual Statement Studies data is the only source of financial ratio benchmarks derived directly from more than 250,000 statements of financial institution borrowers and prospects. Financial statements, also known as “industry norms” or “operating ratios” are used when comparing a company’s performance to competitors in its industry. It contains the financial ratios for 740 industries based on the financial statements of more than 265,000 small and mid-sized companies.
Company and Industry Research
Note that this database requires registration for an individual account. For Refinitiv Workspace you will How To Calculate Gross Income Per Month need to start by searching for a specific public company in the industry you’re interested in. ProSight continues to publish the Annual Statement Studies that RMA has published for over a century to provide reliable industry benchmark data. RMA/ProSight ANNUAL STATEMENT STUDIES is an important resource for credit professionals, valuation specialists, and M&A dealmakers
For small businesses, Financial Studies of the Small Business may also be helpful though it is somewhat dated. Financial Studies of the Small Business only looks at businesses with capitalization of less than $1-2 million, but is very old and no longer published. Microsoft and your local website designer are technically in the same broad industry (software services), but their vastly different sizes make a direct comparison useless.
2025 Annual Statement Studies: Financial Ratio Benchmarks
Contains both national and regional data In addition to nationally based balance sheets, ratios, and income statements, the Valuation Edition also lets you select from six different regions, so you can include the effects of regional economic activity. These financial statements come directly from member institutions that get their data straight from the businesses they serve. In addition to comparing your company’s financial ratios to its industry, you will want to compare your company’s financial ratios to its own past and future financial ratios.
RMA ratios are also available online in the IBISWorld database. These are then used as a benchmarking tool in comparing a company’s performance to that of its industry. RMA is the most popular of these sources, but it doesn’t include every industry. To find an industry’s NAICS code, you may visit the US Census Bureau’s NAICS resource page They are calculated by aggregating financial data from multiple firms in the same industry.
Financial Industry Benchmarks
And if you’re using Excel, you can download the data directly into Excel. RMA and BAI, two of the most trusted, non-lobbying financial services organizations, have come together to form ProSight Financial Association. Our Risk Rating tools increases consistency, transparency, and objectivity in assessing risk of both borrowers and the collateral supporting lending transactions. Login instructions will be emailed within one business day.
You have the choice of selecting from a list of NAICS codes or searching the list for specific text that you enter. ValuSource valuation projects have RMA ranking analysis built-in. For Excel, we provide an Excel-based analyzer that allows you to perform a ranking analysis on a target company.
These figures are published by industry groups, banks, and trade associations for use as benchmarks. Ratios for a particular company are also compared with those for the industry as a whole or with those for a specific competitor or group of competitors. They are used to study changes in a company’s operations over time.
You can now see the entire distribution curve and easily rank a company against RMA Annual Statement Studies™ norms. See below for details on the additional data. RMA Annual Statement Studies Valuation Edition has all of the data the standard edition contains, plus a great deal more. ValuSource’s RMA Annual Statement Studies Valuation Edition has more of what the valuation professional needs, and is available exclusively from ValuSource.
How do you account for companies of different sizes? Or it could be that you have to define your industry yourself, based on other criteria … It could be by using business calculator NAICS or GICS codes, or another classification system. How do you define the industry you’re looking at? Start with RMA e-Statement Studies, which is organized by NAICS codes. We are committed to offering world-class customer support, including knowledgeable staff technicians and financial analysts who are available to answer questions about our products and how to apply them for maximum results.
No other source of financial comparison data provides the entire distribution curve. Access years of credit data in a modern, easy-to-use, filterable dashboard to identify growth opportunities, risk rating calibration, early warning analysis and identification of outliers. Count on eMentor to help front line bankers show up smart to customers and prospects, and help analysts with frequently updated industry intelligence from Vertical IQ, trusted financial benchmarks, and vetted best practices for C&I and CRE lending
Another source for your industry’s financial ratios is your industry’s trade association, if it collects financial information from its members. Access the only source of financial ratio benchmarks derived directly from approximately 180,000 statements of financial institution borrowers and prospects. Since RMA Valuation Edition is the only source of financial statement benchmarking data that contains decile data, performing a ranking analysis is not possible with other sources. In reviewing the complete financial statement ranking report, you can easily see (and defend) how the company’s financial performance impacts both ongoing cash flow and risk. Connect with deep risk management, regulatory compliance, fraud, retail, and commercial banking expertise, an engaged community of industry peers, and data-driven insights through ProSight Membership. RMA’s flagship product of comparative peer benchmarking metrics for more than 2,000 US-based industries, featuring financial statement line items, and 22-financial ratios enabling you to make better financial and operating decisions.
They are most often used to compare one company’s financial performance to the financial performance of many comparable companies, in order to assess the ‘health’ of that one company … ‘Industry ratios’ are composites (averaged aggregates) of the ‘financial ratios’ for several (or many) individual companies. Statistics are derived from financial statements from approximately 180,000 privately held small to medium-size businesses. The financial statements are contributed to RMA from member institutions that get their data directly from loan customers. The data was derived directly from more that 180,000 financial statements of member financial institutions’ borrowers and prospects. The financial information is converted into ratios in order to provide a basis for comparison.