INDUSTRY RATIO ANALYSES

What is industry ratio analysis?

Ratio is defined as a simple mathematical statement between any two items on financial statements. Ratio is not only beneficial in terms of evaluating the financial status of company, it is also beneficial on fulfilling the planning and controlling operations and forecasting how third persons especially company shareholders, accumulation owners who want to invest shares and finance institutions see and evaluate financial status and power of the company.

How can you interpret industry ratio analysis?

These measures are benefited on evaluation of calculated ratios; comparing calculated ratios with ratios which take place in past operation periods of the company. Comparing ratios with ratios of same companies or typical ratios which are in the same sector of company or sector average. Due to same companies or companies which are in the same sector can face with same financial and operating problems, provided that in the same calculation period, taking same companies’ or typical ratios of that sector if calculated as a measure and making comparisons are the basises of this interpretation method.

Reporting Industry Ratio Analysis

• Select Indes/Sector: Through this option, you may see situations of stocks in their own sectors as comparatively. Sectors which are given with index codes are included in that index. Sectors which are given below are created by BIST on BIST weekly bulletins.

• Ratios: You may choose the group of ratios which you want to see in report.

• Debt Ratios: Ratios that show how much corpartion is benefited from foreign sources in its funding. These ratios which show that relationship between foreign sources and equity capitals respond that company is funded well or not and shares of credit givers are enough or not.
• Growth Ratios: Growth Ratios show companies growing performance.
• Evaluation Ratios: Evaluation ratios give value of ratios which using evaluate financial statement of company.
• Operating Ratios: Ratios that measure efficiency degree of assets during usage on corporation operations. These ratios are often used for comparing corportaions in same industry field.
• Financial Ratios: Financial Ratios gives the hints about company’s financial conditions.
• Profit Ratios: Ratios that measure reached profitability at the end of operations.
• Liquidity Ratios: Liquidity ratios are used for stating company’s power of paying short term debts and working capital of company is enough or not.
• Equity Capital Capability Ratios:Ratios that measure companies’s equity capitals are enough or not.
• Cost Ratios: Cost ratios gives clues about companies’ expenses.

• Term: The part that balance-sheet period which will be used on report is selected.

• Currency: Determines that analyze will be made according to which currency. For example, if you choose USD, the report will be created on US dollar based balance-sheets of the companies. CBRT buying is used as currency.

• Report: Report brings the analysis by user preferences.