LibGuides: MGT 185: Investment Banking: Industry Background

IBIS World for Industry Maturity Scan

IBISWorld Industry Intelligence
IBISWorld contains U.S. and global industry market research reports, including a specialized collection of China Industry Reports. It also provides U.S. business risk ratings, and selected economic and demographic data. Contents are downloadable as full reports or selected elements, such as SWOT analyses, statistical tables and graphs.

An industry report in IBIS World contains several segments that could help with estimating future performance of an industry:

Industry at a Glance
- life cycle, barriers to entry, concentration
Industry Performance
- consolodation and globalization, revenue growth trend
Industry Overview
- regulation and conolidation, estimated revenue growth outlook (5 years) , industry life cycle graph and discussion
Competitive Landscape
- market share concentration, barriers to entry, cost structure benchmarks
Operating Conditions
- revenue volatility, regulation and policy considerations
Key Statistics
- past industry trends and ratios (benchmarks), estimates of revenue growth,

Example of an IBIS World industry report.

What industry ratios sources are there?

Key Business Ratios
This online version of Dun & Bradstreet's Industry Norms and Key Business Ratios includes current benchmarking data for U.S. public and private businesses using parameters of solvency, profitability and efficiency for 800 lines of business. Features include importing and exporting of data. For historical ratios (older than current five years), use the Mergent Archives.

Secondary sources:

We have a couple online sourced that provide ratios, but they are limited in the number of companies they follow and/or the type of ratios they provide. However, if you are in those databases already, it may be simple to pull the ratios directly from them.

Mergent Online

IBISWorld

When you do an industry search, and display the results, ratios are listed under the tab to the far right, "Key Statistics." Please provide feedback on whether this database was useful to you or not..

WRDS Financial Ratios Visualization Tool
This interactive application teaches how to generate and compare financial ratios to one another and to baseline industry measures. Ratios included here fall into the following categories: valuation, profitability, capitalization, financial soundness, solvency, liquidity, and efficiency. Learning materials include an accompanying slide deck and formulae for ratios. Concepts can be transferred to using other WRDS (e.g., Compustat) or ratios data sources (RMA, D&B, Mergent).

Additional Sources for Analysts Reports and Pre-packaged Risk Analysis

These resources cover background on industries or companies from a risk analysis perspective.

EMIS Intelligence (formerly ISI Emerging Markets)
Provides economic studies, company & industry reports, country risk, statistics and political news on emerging market countries. Covers public & private companies & global industry reports. Includes interactive data analysis tools & news alerts. Excellent China coverage.

Thomson ONE/Investext
This database specializes in analyst research reports on companies, industries, and countries prepared by analysts at leading investment banks, brokerage houses, and trade associations. Its strength is investment reports on public companies. Thomson ONE platform only works with the Internet Explorer (IE) browser. See "more" for details.
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Tips for running ThomsonONE/Investext: Microsoft Edge's backward IE compatibility no longer works. Get IE v11 from https://go.microsoft.com/fwlink/p/?linkid=290956. Alternative for iOS users & those who do not wish to install IE, are to use a PC in the Data & GIS Lab..
Global Market Information Database (GMID)
The GMID presents reports on customers, companies, industries and countries that focus on consumer market research. Reports include details about market segmentation, leading companies, industry forecasts, consumer spending and attititudes, and economic and business trends.
Global Insight
Useful resource for same-day news analysis of country risk. We also have the automotive industry module included with our subscription.
Fitch Country Risk & Industry Research
Formerly known as Business Monitor, Fitch now features reports on country, economic and international business risk, and contains industry reports.
EIU.com
Economist Intelligence Unit provides news analysis and country risk articles. Some may prefer the look and navigation of http://www.eiu.com/ucsd.

Gartner Research Service
This well-known collection of market analyst reports, international news and real-world analysis focuses on a broad coverage of computing and technology sectors. Students will like the market research and IT staff will like its tools and benchmarking contents. Gartner analysts cover a broad range of business functions that impact the technology sector. NOTE: Choose either your Business Systems or Active Directory (AD) credentials to login. Gartner also recruits and hires; see the careers section of their webpage.
Mergent Online
Provides detailed information about U.S. and International public companies. Content includes: links to SEC EDGAR filings, current and archived company profiles and annual reports, historical financial and stock price data, financial ratios, equity research reports, and industry reports.

How do I use ratio information?

These books provide background on understanding and using ratio analysis.

The full list of books about ratio analysis and financial statements. Below are the "classics" and highlighted materials:

Financial Statement Analysis, 5th ed. by Martin S. Fridson; Fernando Alvarez
Call Number: e-book
ISBN: 9781119457190
Publication Date: 2022
An updated guide to financial statement analysis that will help you better understand of the techniques that will help you interpret financial statements.
Financial Forecasting, Analysis, and Modelling by Michael Samonas
Call Number: Wiley e-book
ISBN: 9781118921081
Publication Date: 2015
This book provides a complete framework of long-term financial forecasts in a practical and accessible way, helping finance professionals include uncertainty in their planning and budgeting process. With thorough coverage of financial statement simulation models and clear, concise implementation instruction, this book guides readers step-by-step through the entire projection plan development process. Readers learn the tools, techniques, and special considerations that increase accuracy and smooth the workflow.
Analysis of Financial Statements, 3rd ed. by Pamela Peterson Drake; Frank J. Fabozzi
Call Number: Wiley e-book
ISBN: 9781118299982
Publication Date: 2012
This practical guide to understanding and interpreting financial statements for assessing a company's financial health and risks. The book covers issues of transparency, cash flow, income reporting, and much more. Whether evaluating a company's financial information or figuring valuation for M&A's, analyzing financial statements is essential for both professional investors and corporate finance executives. The Third Edition of Analysis of Financial Statements contains valuable insights that can help you excel at this endeavor.
Total Management by Ratios: an analytic approach to management control and stock market valuations by Hrishikes Bhattacharyya
Call Number: e-book
ISBN: 8178299968
Publication Date: 2007
This is a pioneering book that integrates functional analysis of a business enterprise with stock market valuation. It moves beyond the convention of financial statement analysis to first evaluate every function of management and then integrate this into the total corporate functioning of an enterprise, leading to its valuation in the stock market.