A Cross-Industry Analysis of Financial Ratios: Comparabilities and
Corporate Performance

A Cross-Industry Analysis of Financial Ratios: Comparabilities an...

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Editorial Reviews

This work takes financial ratios, a popular tool for analyzing firms and their performance, and describes the methods that can be used for comparing these ratios across a large number of industries. The authors have assessed seven financial ratios--return on investment, capital intensiveness, inventory intensiveness, financial leverage, receivable intensiveness, short term liquidity, and cash position--in relation to seven main manufacturing and retail industries. The result is a new factor analysis that will allow financial analysts to compare the performances of different types of companies and establish a global view of their relative positions.

Customer Reviews

Ambitious goal, poor execution

Reviewed by Ng Hon Ming, 2008-11-07

The author's attempt to explain difference in industries by financial ratios was failed.
Indeed, he did bring insight in explaining characteristics of different industries and their independences. However, I could not find much insight in the author's methodology. I would suggest the author to spend more time polishing his academic work into a business-oriented book.