BUSINESS INFORMATION CENTER
|
|
|
RATIO ANALYSIS RESEARCH GUIDE
Ratio analysis involves using numerical information from company
financial statements to determine key relationships. Ratios
for specific time periods may be evaluated against ratios from
other time periods for both internal and external comparative
purposes. Ratio analysis can be used to assess risk, estimate
value, document trends, and to conduct an evaluation of a company
against similar companies in the same industry. For additional information,
Ask a BIC Librarian.
GENERAL RATIO INFORMATION
Common ratios included in ratio analysis are quick ratio, current
ratio, earnings per share ratio, debt to equity ratio, and price-earnings
ratio. To find out more information about these ratios or ratio
analysis consult a financial dictionary or glossary, such as the resources listed below.
Annual Statement Studies: Financial Ratio Benchmarks Definitions and general information on financial ratios from the Risk Management Association (RMA). Full access to RMA Annual Statement Studies detailed below.
CCH Business Owner's
Toolkit Operating ratios for small businesses.
Dictionary
of Business Terms (NetLibrary) E-book with general business definitions, including information on ratios and ratio analysis. (SMU Community Only)
Financial
Analysis Tools and Techniques: A Guide for Managers (NetLibrary) Information on key financial and economic analysis, including ratio analysis. (SMU Community Only)
Financial
Statement Analysis: A Practitioner's Guide (NetLibrary) Information on financial statement analysis. (SMU Community Only)
View SMU Library Catalog record.
Handbook of Business and Financial Ratios (Fondren Library) Explanation of common business ratios.
View SMU Library Catalog record.
ValuationResources.com
A commercial Web site bringing together a number of useful resources in one
spot.
Top of Page
WHERE TO FIND RATIOS
When conducting any kind of company research you should have a few key pieces of information easily at hand. For each company you are researching consider locating:
- the full company name
- the ticker symbol (if the company is public)
- the industry in which the company competes
- the SIC and/or NAICS codes under which the company reports
A recommended database for starting company research is Hoover's Online. You can locate a company's full name, ticker symbol,
SIC and NAICS codes, and some industry information very easily. Search for the
company by name or ticker at the home page.
Almanac of Business and Industrial Financial Ratios (Fondren Library) Provides financial ratios for companies in various asset ranges by SIC code.
Data reported are based on aggregate numbers from IRS records.
View SMU Library Catalog record.
Bloomberg database Obtain industry ratios with the "RV" (relative value) function. Ratios
are available for public companies in the United States and internationally.
Current information about stock values and performance data. A stand alone terminal is available in the Business Information Center to current SMU students, staff, and faculty members. (Restricted Resource- A valid SMU ID is required for access.)
Factiva This database provides company to industry comparison reports and financial
ratios via the "Company Quick Search" function. (Cox School of Business IP addresses only)
Hoover's Online Click the "Comparison Data" and "Competitive
Landscape" links to see information, including ratios, about your company,
competitors, and the industry. Note that some companies may not have all these linking
options. (SMU Community Only)
Industry Norms & Key Business Ratios (BIC and Fondren Library) Information on industry norms and key business ratios organized by SIC code.
View SMU Library Catalog record (BIC).
View SMU Library Catalog record (Fondren).
Mergent Company Archives Manual (Fondren Library) This manual contains restored extensive business descriptions, histories and financial analysis – timely to the date each company ceased to exist under that name. Each company report begins with a description of the fate of the corporation.
View SMU Library Catalog record.
Mergent Industry Review (Fondren Library) Offers comparative figures and rankings on companies and industry groups.
View SMU Library Catalog record.
MSN
Money: Key Ratios Company and industry ratios are provided via a
searchable system.
RMA Annual Statement Studies
(Fondren Library) Provides financial and operating ratios for businesses in hundreds of industries.
View SMU Library Catalog record.
Standard & Poor's NetAdvantage Using the publication search option on the upper
right side of the screen, choose "Industry Survey"
from the drop down box under the "Select publication"
heading. Choose either ticker or company name from the drop
down box under the "Search by" heading and then type
the ticker or company name in the box under the "Enter" heading.
Hit return or click the gold arrow to search. At the industry
survey screen look on the right side under the heading Comparative
Company Analysis and notice links labeled: Profit Ratios, Balance
Sheet Ratios, and Equity Ratios. Ratios are displayed by company
and are grouped with other companies in the industry for easy
comparison.
To see information on your company alone, return to the the initial search
screen and choose "Stock Report" under the "Select publication"
heading. A PDF file containing a report on your company should open. (SMU IP addresses only)
Thomson
ONE Banker Individual company ratios found under "Financials" section. Industry ratios and company ratios within a specific industry found under "Comparables" section. (SMU Community Only)
Top of Page
Last Updated: 11/9/2008
