Leverage Ratios
Leverage Ratios
In business, there are many situations where a person would want to compare a firm's performance against the industry as a whole. These situations include strategic planning, business acquisition, the sale of a business, and during loan applications. This Demonstration helps in understanding a firm's performance and as a comparative tool against industry standards. In this example, after entering balance sheet details, the firm's performance on two key ratios can be reviewed against selected industry averages. Industry standards can be selected based on the NAICS industry code for the firm.