Financial Benchmarks
These financial benchmarks have been published by Ciaran Walsh in the book Key Management Ratios, see source below. The number of companies in the samples is approximately 200 large worldwide companies . There is not an even distribution of these companies cross the different industries and countries below so the averages are not linear.
Return on equity (%), ROE. Average return on equity cross surveyed countries and industries is 11%. Based on the largest UK companies, 50% of the companies are in the range between 8,5% and 24% in ROE. 80% can be found within 5% to 31% ROE.
Return on equity (%), ROE. Average return on equity cross surveyed countries and industries is 11%. Based on the largest UK companies, 50% of the companies are in the range between 8,5% and 24% in ROE. 80% can be found within 5% to 31% ROE.
Return on total assets (%). Average return on total assets cross surveyed countries and industries 8%
Margin on sales (%). Average margin cross surveyed countries and industries 8,5%
Sales to total assets (times). Average sales to total assets cross surveyed countries and industries 0,9
Sales to fixed assets (times). Average sales to fixed assets cross surveyed countries and industries 3,6
Inventory days. Average inventory days cross surveyed countries and industries 35. Based on the largest UK companies, 50% of the companies are in the range between 11 and 60 inventory days. 80% can be found within 4 to 78 inventory days.
Accounts receivable days. Average accounts receivable days cross surveyed countries and industries 62.
Current ratio (times). Average current ratio cross surveyed countries and industries 1.7. Based on the largest UK companies, 50% of the companies are in the range between 0.8 and 1.5. 80% can be found within the range 0.5 to 1.8.
Quick ratio (times). Average quick ratio cross surveyed countries and industries 1.4. Based on the largest UK companies, 50% of the companies are in the range between 0.6 and 1.1. 80% can be found within the range 0.3 to 1.4.
Debt/total assets (%). Average debt/total assets cross surveyed countries and industries 58%.
Working capital to sales ratio among UK companies show that 50% of the companies are in the range between 10% and 21%. 80% of the companies can be found in the range 4% to 44%. Among the US companies the total average working capital to sales is 7%.
Source: Ciaran Walsh, Key Management Ratios 4th edition, 2008, Harlow (link to latest edition)
