Where to Find Industry Average Ratios?

Industry average ratios provide businesses and investors with powerful tools for benchmarking performance and evaluating financial health. These aggregate figures allow for a comparison of a company’s standing against others operating within the same industry sector. Understanding these averages supports strategic decision-making and offers insights into a company’s relative strengths and areas for improvement.

Commercial Data Providers

Commercial data providers offer comprehensive and granular industry average ratio data, often through subscription-based services. These platforms gather extensive financial information, providing detailed insights that can be tailored to specific needs. Their data collection methods typically involve aggregating financial statements from a wide range of public and private companies, survey data, and proprietary analysis.

The Risk Management Association (RMA) publishes its Annual Statement Studies, providing financial ratio benchmarks derived from financial statements submitted by financial institution borrowers. The RMA data covers numerous industries, categorized by North American Industry Classification System (NAICS) codes, and includes various financial ratios. Data is arrayed by asset and sales size, offering different categories and historical information.

Another valuable commercial option is BizMiner, which offers financial benchmarks for numerous industries. Users can customize reports with filtering options based on industry, market, and company size, accessing various financial ratios. While primarily subscription-based, some free business statistics and financial ratios may be available through their affiliated platforms.

S&P Capital IQ Pro delivers extensive financial data, analytics, and market intelligence for numerous public and private companies globally. This platform provides standardized financial, supplemental, and industry-specific data items on various bases, including annual, quarterly, and last twelve months. Access to S&P Capital IQ Pro is typically through premium institutional subscriptions.

The Bloomberg Terminal is another robust, albeit expensive, resource widely used by financial professionals. It provides real-time market data, news, and analytics, along with extensive financial ratios through its Relative Value (RV) function. The terminal’s Bloomberg Intelligence feature offers in-depth industry analysis and insights, covering a broad range of asset classes including equities, fixed income, and commodities. While its high cost makes direct individual subscriptions uncommon, many university libraries and financial institutions provide access to the Bloomberg Terminal for research purposes.

Official Government and Public Sources

Government agencies and publicly funded initiatives offer reliable industry average data, often accessible at no cost. These sources are valuable for their authoritative nature and broad coverage, though they may present limitations in terms of data granularity or timeliness.

The U.S. Census Bureau conducts the Economic Census every five years, providing comprehensive statistics on American businesses at national, state, and local levels. This census serves as a benchmark for various economic activities, collecting data on the number of firms, establishments, employees, payroll, and sales or revenue across different industries. Industries are classified using the North American Industry Classification System (NAICS) codes, allowing for consistent data categorization. While the Economic Census provides detailed aggregated financial data from which ratios can be calculated, it may have a data lag due to its five-year collection cycle.

The Internal Revenue Service (IRS) also provides valuable insights through its Statistics of Income (SOI) program. The SOI produces detailed annual statistics derived from tax returns filed by individuals, businesses, and non-profit organizations. These statistics include aggregated balance sheet and income statement data, categorized by industry sector, which can be used to derive financial ratios. The SOI data is publicly available on the IRS website, offering a free resource for understanding industry financial characteristics.

The U.S. Small Business Administration (SBA) serves as a valuable guide for small businesses seeking financial benchmarks, though it does not maintain a direct database of pre-calculated industry average ratios. The SBA often provides educational resources that explain financial ratio analysis and how to interpret these metrics. It directs businesses to various financial analysis tools and external data sources, emphasizing the need for peer comparison in strategic planning.

Industry Associations and Trade Publications

Industry associations and their affiliated trade publications serve as highly specialized sources for financial benchmarks and operational data. These organizations collect information directly from their members, providing uniquely granular and relevant data for specific sectors.

Trade associations play a significant role in gathering and disseminating data pertinent to their industry members. They often conduct surveys and studies to compile operational benchmarks and financial ratios unique to their niche. These can include specific metrics tailored to the industry’s operations, offering insights broader databases might not capture. Access to these specialized reports can vary; some associations offer them exclusively to members, while others make them available for purchase or provide free summaries. To locate relevant data, individuals typically search for associations specific to their industry, then explore the association’s website or contact them directly.

Trade magazines and journals also contribute to this category by publishing aggregated industry data or survey results. These publications frequently feature articles that analyze financial trends, operational efficiencies, and key performance indicators within their respective industries. While they may not offer raw datasets, they provide valuable summaries and contextual analysis of industry performance. The specificity of the data found through industry associations and trade publications can be particularly useful for businesses seeking highly relevant comparisons within their precise market segment.

Financial News and Educational Websites

Financial news outlets and educational websites can serve as initial entry points for understanding and locating industry average ratios. While generally not primary data providers, they often aggregate, summarize, or link to data from more comprehensive sources.

Websites like Investopedia, Yahoo Finance, and major business news platforms such as The Wall Street Journal and Bloomberg (beyond its terminal service) frequently publish articles discussing industry trends and financial performance. These sites explain various financial ratios, illustrate their application, and sometimes provide high-level industry overviews or examples of how specific companies compare to their peers. They can be particularly useful for gaining a foundational understanding of ratio analysis.

These platforms often synthesize information from the commercial and government sources mentioned previously, making complex data more accessible to a general audience. They might feature simplified tables of common ratios for broad industries or offer insights into what constitutes a typical debt-to-equity ratio for a capital-intensive sector. While they may not offer the detailed, customizable datasets found in commercial subscriptions, they excel at providing context and guiding users toward more specialized resources.

Educational institutions or non-profit organizations may also host websites that compile lists of financial resources or provide basic industry statistics. These sites can be helpful for students, small business owners, or individuals beginning their research into industry benchmarks. Their utility lies in their ability to demystify financial concepts and direct users to foundational data sources, acting as discovery tools rather than comprehensive repositories of raw financial data.