Industry Average Ratios

The purpose of the third part of the comprehensive project is to use resources available to obtain industry averages for commonly used ratios. Additionally, you will compare company ratio results to industry averages.

1. 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.

2. Look up the following industry-average ratios:

1. Current ratio

2. Debt ratio

Note that some industry averages may not apply to your company.

Alternative to Industry Averages:

If you are not able to find the industry average for part 3 of your project, please consider the following:

Unfortunately, some of the websites where you can find industry averages will require you to pay for them. Instead of using industry average, calculate the same ratios for one of the competitors to the company you used in your project. That will give you the comparative information you need for Part 3 of the project. I believe this will help.