I need to do a report and compare ratios for a target company against industry averages.
I have calculated the averages for my company, but where do I get information on industry averages? For example, what is the industry average receivable turnover ratio in the enterprise software industry?
To find information on industry averages, you can use various sources. Here are a few steps you can take to locate the industry average receivable turnover ratio in the enterprise software industry:
1. Industry Associations: Check if there are any industry associations or organizations related to the enterprise software industry. These associations often publish detailed reports and statistics that include industry averages. Visit their websites or reach out to them directly to inquire about the specific ratio you are looking for.
2. Financial Databases: Utilize financial databases like Bloomberg, Capital IQ, or FactSet. These databases provide industry-specific financial data, including average ratios. You may need a subscription or access through an educational institution or library to use these resources.
3. SEC Filings: Visit the U.S. Securities and Exchange Commission (SEC) website and search for the annual reports or 10-K filings of major companies within the enterprise software industry. The Management's Discussion and Analysis (MD&A) section, typically found in these reports, often provides insights into industry trends and benchmarks that might include relevant ratios.
4. Research Reports: Look for industry-specific research reports published by reputable research firms, investment banks, or financial institutions. These reports often offer comprehensive analysis and include industry averages for various ratios. You may find such reports through platforms like eMarketer, Gartner, or Forrester, or by searching through library resources.
5. Industry Publications: Search for trade journals, industry publications, or magazines that focus on the enterprise software industry. These publications may provide industry profiles, benchmark studies, or surveys that highlight average ratios.
Remember, industry averages may vary depending on the specific data sources or methodologies used for calculation. It's a good practice to check multiple sources and consider the date range of the data to ensure you're using the most current and accurate industry averages.