This video will demonstrate how to find key business ratios by industry using the database Mergent Key Business Ratios.

Video Transcript:

This video will demonstrate how to find key business ratios by industry using the database Mergent Key Business Ratios.

Once the Key Business Ratios database is opened, you will see a page marked announcements. Press continue to move on.

Mergent industry ratios

Here, you will see a page with several years’ worth of business ratios for a particular industry. Take special note of the sample sizes. For some industries, only data from a few companies is available, and hence may be heavily skewed. Also, notice for each year the information is broken down into lower, median, and upper segments, further assisting you in finding long tails within your sample.

Let’s look up the Pharmaceutical industry’s ratios as an example. This can be searched by SIC code, NAICS code, or with the Line of Business dropdown.

Let’s use the dropdown and click Pharmaceutical preparations. If we type the first few letters of the industry the dropdown selection will quickly jump to the industry of your choice.

Here, we see all of the most important ratios for this industry over the last several years.

If the information or particular ratio you are looking for is not listed here, you may be able to find it by drilling down further using another database called Mergent Online. If you have any questions, please ask a librarian.