Hi you, I see some financial analysis report mentioning the benchmark analysis and compare company financial ratio with industry financial ratio. I just want to understand how can analyst computer the industry ratio such as ROA, ROE, P/E, Gross Proftit Margin, Acid Test Ratio…so on so fourth. Anybody kindly give me some your ideas of calculating methods of these? Or could you please show me some Internet Resource for my reference reading? Your help is high appreciated! Thank you!
industry ratio will likely be provided in the question. In real life, if you wanted to compute (for example) average industry ROE, you would take the ROE from every company in the industry, and then combine them using some sort of weighted average.