R 3 = Ratios, Ratings, & Reference

Disclaimer

BRASS Program, ALA Annual Conference
Monday, June 26, 1995, 8:00-11:00 AM
McCormick Place, North Building, Room 228


Learn how business ratios & ratings are created,
how business people & academics use these numbers,
and how you can help with ratios and ratings at the reference desk.


Dr. Lazarus Angbazo teaches at Purdue's Krannert Graduate School of Management. Dr. Angbazo has a Ph.D. in Finance from New York University, consults for Fannie Mae, and his research involves ratios.

M. Alexander Simic, a vice president with the investment research firm Duff & Phelps, leads the firm's coverage of the health care industry and participates in the rating analysis of high technology firms. Mr. Simic was valedictorian of his MBA class at Loyola University Chicago and has worked as a commercial banker as well as investment analyst.

Matt Hannigan, a reference librarian at the Business, Science, & Technology Division of the Indianapolis/Marion County Public Library is known for a sense of humor as well as an understanding of business reference.

Sponsored by
the Business Reference and Adult Services Section (BRASS)
of ALA's Reference and Adult Services Division (RASD)
Co-sponsored by the Public Library Association



Bibliography

Ratio Sources | How to Use Ratios | Ratings



RATIO SOURCES

1. Almanac of Business and Industrial Financial Ratios . Leo Troy. Englewood Cliffs, NJ: Prentice Hall, annual. Data is derived from tax returns of all active corporations filed with the Internal Revenue Service. Only corporations are included in the set. Each industry has two tables, one for all companies regardless of net income and another for corporations with net income.

2. Analysts Handbook . New York: Standard & Poor's, annual with monthly updates. Presents industry statistics for those industries represented in the Standard and Poor's 500 Index. Financial data covers 30 years, the selected ratio data covers only six years. Ratios include current ratio, quick ratio, debt to total assets, debt to total capital, debt to total equity, times interest earned, inventory turnover, total assets turnover, profit margin, return on total assets.

3. Business Profitability Data . Dallas, TX: Weybridge, 1991. Publisher out of business. Ratio data as well as downside risk, upside potential, source and use of capital, and comments. 311 business covered. Does not give source of data.

4. Compustat PC Plus . New York: Standard & Poor's, varies. Ratios are computed and displayed either in one of the reformatted reports or in a user defined report. This title is CD-ROM product; another version of Compustat is available on tape.

5. Corporation Source Book: Publication 1053 . Washington, DC: Internal Revenue Service, annual. Detailed income statement, balance sheet, tax, and selected other items, by major and minor industrial groups and size of total assets, and for all returns and separately for returns with net income. Alternative formats include microfilm, magnetic tape, or diskette.

6. Dun's Insight . Parsippany, NJ: Dun & Bradstreet Credit Services, diskette. 800 industries are identified by a 4 digit SIC code. The general norms and ratios are presented in an expanded regional edition.

7. Finance, Insurance, and Real Estate USA . Detroit, MI: Gale, 1993. Gives selected industry ratios and items from financial statements for 36 industries defined by four digit SIC codes. Data taken from federal and private sources.

8. Financial Studies of the Small Business . Orlando, FL: Financial Research Associates, annual. Covers approximately 50 types of small businesses. Data for a particular category are broken down by asset sizes.

9. Global Vantage Compustat PC Plus . New York: Standard & Poor's, CD-ROM. Ratios are computed and displayed in a preformatted or a user defined report. Differs from Compustat PC Plus in that the monetary unit can be either the country of origin or another country's unit.

10. Handbook of Small Business Data . Washington, DC: Small Business Administration, 1994. No longer being published. Median ratios for nine broad categories. Broken down by values in categories by number of employees, also includes business failures.

11. Industry Norms and Key Business Ratios . Parsippany, NJ: Dun & Bradstreet Credit Services, annual. 800 industries are identified by a 4 digit SIC code. The general norms and ratios are presented in a one volume desktop version or an expanded and more specific edition called Corporate Marketplace. Data from both private and public financial records.

12. Manufacturing USA . Detroit, MI: Gale, 1994. Gives 20 selected industry ratios for 459 industries defined by four digit SIC codes. Based on Census Survey data.

13. Moody's Company Data . New York: Moody's Investors Services, CD-ROM. Using the "Peer Group Analysis" option, after selecting a group, i.e. SIC code. Shows a company's financial position in relation to other companies and in state and region.

14. Moody's Industry Review . New York: Moody's Investment Service, annual. Statistics for 3,500 companies arranged in 137 industry groups. Information includes corporate comparative statistics per industry group, comprising revenues, income, profit margins, and yields. Ratios include current, accounts receivable, inventory turnover, and price-earnings.

15. Moody's International Company Data . New York: Moody's Investors Services, CD-ROM. Using the "Peer Group Analysis" option, after selecting a group, i.e. SIC code. Shows a company's financial position in relation to other companies and in country and region.

16. Partnership Source Book: Publication 1289 . Washington, DC: Internal Revenue Service, Available on magnetic tape. Includes key partnership data for the dates between 1957-1983; number of partners, depreciation, payroll deductions, number of partners, taxes paid deductions, payments to partners, and business receipts. More recent data in SOI Bulletin.

17. Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations . Washington, DC: Bureau of the Census, quarterly. Include assets, liabilities and stockholders' equity, net working capital, selected balance sheet ratios, income statement in ratio format, operating ratios, and balance sheet ratios for all of manufacturing and mining operations in addition to some wholesale and retail trade.

18. RMA Annual Statement Studies . Philadelphia, PA: Robert Morris Associates, annual. Gives industry ratios for liquidity, debt service, leverage, operating, & specific expanse to sales. Ratios are given for over 360 US SIC's and within these for varying levels of both asset size and sales volume. Includes comparative historical data.

19. Service Industries USA . Detroit, MI: Gale, 1995. Gives 22 selected industry ratios for service industries defined by SIC code. Based on Census survey data.

20. Small Business Barometer . Chicago, IL: W.E. Hiller International Corporation, 1980-1984. Continued Barometer of Small Business. Both titles discontinued.

21. Sole Proprietorship Source Book: Publication 1323 . Washington, DC: Internal Revenue Service, available on magnetic tape. Includes key sole proprietorship data for the dates between 1957-1984: number of businesses, taxes paid deductions, payroll deduction, business receipts, interest paid deductions, depreciation, and net income less deficit. Updates published annually in SOI Bulletin.

22. Standard & Poor's Industry Surveys . New York: Standard & Poor's, quarterly or loose-leaf. Industry reports often include both industry ratios and those of individual companies. Which ratios are included varies by the industry type.

23. Statistics of Income: Corporation Income Tax Returns: Publication 16 . Washington, DC: Internal Revenue Service. Contains data by industry on assets, liabilities, receipts, deductions, net income, income subject to tax, tax, and credits. Classified by size of total assets, business receipts, and income tax after credits.

24. Statistics of Income (SOI) Bulletin: Publication 1136 . Washington, DC: Internal Revenue Service, quarterly. Includes current financial statistics on partnerships, corporations, and sole proprietorships. It also contains historical tables, special studies, and articles.

25. Statistics of Income: Partnership Returns: Publication 369 . Washington, DC: Internal Revenue Service, annual. Contains data by industry on assets, liabilities, receipts, deductions, net income, income subject to tax, capital gains, and cost of sales and operations. Classified by industry, state, size of total assets, and number of partners. Covers dates between 1978-1982.

26. Statistics of Income: Sole Proprietorship Income Tax Returns . Washington, DC: Internal Revenue Service, annual. Contains data by industry on assets, liabilities, receipts, deductions, net income, income subject to tax, tax, and credits. Classified by size of total assets, business receipts, and income tax after credits.

27. Tax and Financial Statement Benchmarks . New York: John Wiley and Sons, annual. Derived from IRS tax returns, covering 235 industries, it is arranged by asset size into 13 size-classes. Each table provides data from income statement and balance sheet items plus coverage for a number of ratios.

28. Value Line Investment Survey . New York: Value Line Publishing, weekly. Provides ratios for general industry segments, including industry beta. Also, gives ratios for some of the leading companies in an industry. Includes a section which ranks industry sectors by various factors including some ratios.

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HOW TO USE FINANCIAL AND OPERATING RATIOS

1. 101 Business Ratios: A Manager's Handbook of Definitions, Equations, and Computer Algorithms . Sheldon Gates. Scottsdale: McLane Publications, 1993.

2. All About Annuities: Safe Investment Havens for High-Profit Returns . Gordon K. Williamson. New York: Wiley, 1993.

3. The Basics of Finance: Financial Tools for Non-Financial Managers . Bryan E. Milling. Naperville: Sourcebooks Trade, 1991.

4. Business Mathematics the Easy Way . Calman Goozner. 2nd ed. New York: Barron's, 1991.

5. Corporate Financial Analysis: Decisions in a Global Environment . Diana R. Harrington. 4th ed. Homewood: Business One Irwin, 1993.

6. A Cross-lndustry Analysis of Financial Ratios: Comparabilities and Corporate Performance . J. Edward Ketz et al. New York: Quorum Books, 1990.

7. Duration Analysis: Managing Interest Rate Risk . Gernald O. Bierwag. Cambridge: Ballinger, 1987.

8. Financial Analysis: the Next Step . James O. Gill. Los Altos: Crisp Publications, 1992.

9. Financial Statement Analysis: A Practitioner's Guide . Martin Fridson. New York: Wiley, 1991.

10. The Financial Troubleshooter: Spotting and Solving Financial Problems in Your Company . Joel G. Siegel et al. New York: McGraw-Hill, 1993.

11. Fixed Income Mathematics: Analytical and Statistical Techniques . Frank Fabozzi. Rev ed. Chicago: Probus, 1993.

12. Fundamentals of Financial Management . James C. Van Horne, and John M. Wachowics Jr. 8th ed. Englewood: Prentice Hall, 1992. Textbook.

13. Fundamentals of Investment Management . Geoffrey A. Hirt, and Stanley B. Block. 4th ed. New York: McGraw-Hill, 1991. Textbook.

14. Handbook of Business and Financial Ratios . Michael R. Tyran. Englewood Cliffs: Prentice Hall, 1992.

15. Handbook of Financial Analysis, Forecasting, and Modeling . Jae K. Shim, and Joel G. Siegel. Englewood: Prentice Hall, 1988.

16. How to Interpret Financial Statements for Better Business Decisions . Barry E. Miller, and Donald E. Miller. New York: ACACOM, 1991.

17. How to Profit From Reading Annual Reports . Richard B. Loth. Chicago: Dearborn Financial, 1993.

18. How to Read a Financial Report: Wringing Vital Signs Out of the Numbers . John A Tracy. 4th ed. New York: Wiley, 1994.

19. How to Use Management Ratios . C. A. Westwick. 2nd ed. Aldershot: Gower, 1987.

20. Keys to Improving Your Return on Investment (ROI) . Franklin J. Plewa, and George T. Friedlob. New York: Barron's, 1991.

21. Modern Cost Management and Analysis . Jae K. Shim, and Joel G. Siege. Hauppauge: Barron's, 1992.

22. Principles of Corporate Finance . Richard A. Brealey, and Stewart C. Myers. 4th ed. New York: McGraw-Hill, 1991. Textbook.

23. Techniques of Financial Analysis . Erich A. Helfert. 7th ed. Homewood: Irwin, 1991.

24. Thinking Finance: Everything Managers Need to Know About Finance and Accounting . Joel G. Siegel, and Jae K. Shim. New York Harpers and Row, 1990.

25. Use of Ratio Analysis by the Internal Auditor . Charles A. Krueger. Altamonte Springs: Institute of Internal Auditors, 1986.

26. The Vest-Pocket Guide to Business Ratios . Michael R. Tyran. Englewood Cliffs: Prentice-Hall, 1992.

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RATINGS

1. Bank Financial Quarterly . Hartland, WI: IDC Financial Publishing, quarterly. Rates all FDIC-insured commercial banks and US bank holding companies also includes ratios and statistics.

2. Bank Quarterly Ratings and Analysis . Austin, TX: Sheshunoff Information Service, quarterly. Ratings and ratios for all federally insured banks. Arranged alphabetically.

3. Bank Safety Directory . West Palm Beach, FL: Weiss Research. Banks listed alphabetically and by geography. Arranged by assets and ratios. Glossary. Uses raw data from the Board of Governors of the Federal Reserve System.

4. Banking Comparative Statistics . Chicago: Duff & Phelps Credit Rating, quarterly. Rates all FDIC-insured banks also contains ratios and statistics.

5. Best's lnsurance Reports: International . Oldwick, NJ: A.M. Best, annual with updates. Foreign insurance companies. Ratings, operating comments, balance sheet summaries, cash flow and investment data, management, history, ratios and statistics. Information in both country's currency and US dollar equivalent.

6. Best's lnsurance Reports: Life Health . Oldwick, NJ: A.M. Best, annual with updates. American and Canadian life and health insurance companies. Ratings, operating comments, balance sheet summaries, cash flow and investment data, management, history, ratios, and statistics.

7. Best's Insurance Reports: Property Casualty . Oldwick, NJ: A.M. Best, annual with updates. American and Canadian property and casualty insurers. Ratings, operating comments, balance sheet summaries, cash history, ratios, and statistics. flow and investment data, management, history, ratios, and statistics.

8. Best's Key Rating Guide: Property Casualty . Oldwick, NJ: A.M. Best, annual. Summary of Best's Insurance Reports: Property Casualty. Includes ratings.

9. Bond Guide . New York: Standard & Poor's, monthly. Descriptive and statistical data on over 6,400 bonds, including domestic, Canadian, and foreign corporate issues; convertible bonds; and larger states and municipal obligations and revenue bonds.

10. Brokerage Firm Safety Directory . West Palm Beach, FL: Weiss Research, quarterly. Safety ratings of brokerage firms. Capitalization, liquidity, risk, and leverage indexes included per company. Historical comparisons.

11. Cates Bank Rating Service . Washington, DC: Ferguson & Company, quarterly. Includes around 2,000 US banks and thrifts, covers rating history and trends.

12. Commercial Paper Ratings . New York: Standard & Poor's, monthly. Analysis and ratings of commercial and long-term debt, bank line policy, and rating rationale.

13. Credit Union Financial . Hartland, WI: IDC Financial Publishing, quarterly. Rates all NCUA-reporting credit unions and has peer group comparisons.

14. CreditWeek . New York: Standard & Poor's, Weekly. Detailed analyzes of company and industry ratings and trends for fixed income securities, including corporate and municipal bonds.

15. DebtWatch . New York: Thomson BankWatch, quarterly. This free newsletter provides long-term debt ratings with assessments on the performance of US and international banks and securities firms.

16. Dollar Bond Evaluator . New York: Kenny Information Services, annual. Rates municipal bonds.

17. Duff & Phelps Bloomberg . Chicago: Duff & Phelps Credit Rating, continuous. Daily commentary on credit rating actions.

18. Duff & Phelps Credit Analysis . Chicago: Duff & Phelps Credit Rating, annual. Company report highlighting long-term fundamentals, business and financial risks, including key financial measures with rating rationale and outlook.

19. Duff & Phelps Credit Analysis Update . Chicago: Duff & Phelps Credit Rating, semi-annual. Update of Duff & Phelps Credit Analysis.

20. Duff & Phelps Credit Decisions . Chicago: Duff & Phelps Credit Rating, weekly. Ratings actions and watch listings.

21. Duff & Phelps Rating Guide . Chicago: Duff & Phelps Credit Rating, monthly. Listing of current domestic and international ratings.

22. Duff & Phelps Rating History Handbook . Chicago: Duff & Phelps Credit Rating, annual. Current Ratings with senior debt rating changes.

23. Dun & Bradstreet Reference Book of American Business . Murray Hill, NJ: Dun & Bradstreet. Ratings of 3,000,000+ companies. Estimated financial strength and composite credit appraisal based on book financial statement or on any estimated financial statement submitted by the company.

24. Fitch Rating Register . New York: Fitch Investors Service, monthly. Ratings for bond issues, including corporations, commercial paper, and preferred stock, including "cash-flow adequacy" rating.

25. Insurer Solvency Review . New York: Standard & Poor's Ratings Group, annual. Standard & Poor's ratings and selected statistics of 3,000+ insurance companies.

26. International Banking Data Base . Eura-IBCA CD. New York; London: IBCA Banking Analysis Limited, 18 x year. Statistical database on CD-ROM covering 8000 international banks, allowing analysis and comparison of banks.

27. International CreditWeek . New York: Standard & Poor's, monthly. Detailed analyzes of company and industry ratings and trends for fixed income securities, including international corporate, municipal bonds, and commercial paper.

28. Investment Performance Digest . Hartland, WI: IDC Financial Publishing, quarterly. Rates FDIC-insured commercial banks, savings banks, and bank holding companies. It also has an analysis of bank portfolio performance.

29. Loan Performance Digest . Hartland, WI: IDC Financial Publishing, quarterly. Evaluates bank loan portfolio performance of FDIC-insured commercial banks, saving banks, and bank holding companies.

30. LZO Bank and Thrift Directory . New York: Lyons, Zomback, & Ostrowski, annual. Ratios, ratings, and statistics for all US commercial banks, bank holding companies, savings and loan, and savings banks.

31. Moody's Bank & Finance Manual . New York: Moody's Investors Service, annual with updates. Capital and business structure; affiliations, history, balance sheets of banks, insurance companies and other financial concerns. Corporate financial strength ratings of insurance companies. Ratings on bonds, notes, and bond funds. Information on other capital sources such as common or preferred stocks provided. Information varies per company listed.

32. Moody's Bond Record . New York: Moody's Investors Service, monthly. Ratings for corporate and municipal bonds, government obligations, preferred stocks, international issues, commercial paper, equipment trusts, insurance companies, money market and bond funds, thrifts and credit unions, industrial development revenue bonds and environmental control revenue bonds.

33. Moody's Bond Survey . New York: Moody's Investors Service, Weekly. Analysis of company and industry ratings and trends for fixed income securities, including corporate and municipal bonds, commercial paper and preferred stock, and yield averages.

34. Moody's Industrial Manual . New York: Moody's Investors Service, annual with updates. Capital and business structure; affiliations, history, balance sheets, and ratios of public industrial companies. Ratings on corporate bonds and occasionally for other capital sources such as preferred and common stocks or zero-coupon notes. Information varies per company listed.

35. Moody's International Manual . New York: Moody's Investors Service, annual with updates. Capital and business structure; affiliations and history of public foreign companies. Ratings on corporate bonds and occasionally non-corporate bonds as well. Manual is arranged alphabetically by country and then by company name.

36. Moody's Municipal & Government Manual . New York: Moody's Investors Service, annual with updates. Ratings on government bonds and issues. Capital structure information on governmental entities.

37. Moody's OTC Industrial Manual . New York: Moody's Investors Service, annual with updates. Capital and business structure affiliations history, and balance sheets of over-the-counter companies. Ratings on bonds and information on other capital sources such as preferred or common stock supplied. Information varies per company listed.

38. Moody's OTC Unlisted Manual . New York: Moody's Investors Service, annual with updates. Capital and business structure; affiliations, history, and balance sheets of non-NASDAQ over-the-counter companies. Ratings on bonds and information provided on other capital sources such as preferred or common stocks. Information varies per company listed.

39. Moody 's Public Utilities Manual . New York: Moody's Investors Service, annual with updates. Capital and business structure; affiliations, history, balance sheets, and ratios of public utilities. Ratings on bonds and information on other capital sources such as common or preferred stocks provided. Information varies per company listed.

40. Moody's Transportation Manual . New York: Moody's Investors Service, annual with updates. Capital and business structure; affiliations, history, and balance sheets of public airline, railroad, trucking, and shipping companies. Ratings on bonds and information on capital sources such as common or preferred stocks provided. Information varies per company listed.

41. National Underwriter Profiles Health Insurers . Cincinnati, OH: National Underwriter, annual. American and Canadian health insurers. Includes five year historical information, assets, net premiums, and ratios. Also includes Moody's Financial Strength Ratings and Duff & Phelps Claims Paying Ability Ratings.

42. National Underwriter Profiles Life Insurers . Cincinnati, OH: National Underwriter, annual. American and Canadian life insurers. Includes five year historical information, assets, net premiums, and ratios. Also includes Moody's Financial Strength Ratings and Duff & Phelps Claims Paying Ability Ratings.

43. Prerefunded Bond Services . New York: Kenny Information Services, annual w/3 quarterly updates. Rates municipal bonds.

44. Quarterly Bank and Savings & Loan Rating Service . Frederick, MD: Lace Financial, quarterly. Ratings of US banks and Savings and Loans. "Data obtained from preliminary computer tapes purchased from the federal government." Information provided includes assets, income, liquidity, capital, and earnings ratios. Lace ratings are given in six quarterly periods.

45. Rating Reviews . New York; London: IBCA Banking Analysis Limited, quarterly, updated monthly with faxes. Credit profiles and rating on 400 international banks.

46. S&L Saving Bank Financial Quarterly . Hartland, WI: IDC Financial Publishing, quarterly. Rates Thrifts reporting to the OTS and savings banks reporting to FDIC.

47. Savings & Loan Safety Directory . West Palm Beach, FL: Weiss Research, Ratings of savings & loans. Savings & loans listed alphabetically and by geography. Arranged by assets and ratios. Glossary. Uses raw data from the Board of Governors of the Federal Reserve System.

48. Savings & Loans Quarterly Ratings and Analysis . Austin, TX: Sheshunoff Information Service, quarterly. Ratings and ratios for all federally insured savings & loans. Arranged alphabetically.

49. SNL Quarterly Bank Digest . Charlottesville, VA: SNL Securities, quarterly. Company reports and ratings for publicly traded banks and all US banking companies.

50. SNL Quarterly Thrift Digest . Charlottesville, VA: SNL Securities, quarterly. 400 publicly traded thrifts and summary data on S&L and savings banks.

51. Standard & Poor's Insurance Book: Insurer Ratings Analyses . New York: Standard & Poor's Ratings Group, monthly looseleaf service. Claims paying ability and related ratings such as debt, debenture, and commercial paper for over 900 insurance companies. Business rationale and strategy; operating, performance, management, capitalization, and financial flexibility discussions. Statistics.

52. Stock Guide . New York: Standard & Poor's Corporation Publishers, monthly. Credit ratings of 4,520 US companies.

53. US and International Bank Databooks . New York: Thomson BankWatch, US-quarterly, International-annual. These sources provide a compilation of financial statements, ratios, peer group statistics, and ranking on banking companies and thrifts.

54. Value Line . New York: Value Line Publishing, Weekly. Credit rating on 1,700 US public companies including operating statistics, projections, and historical prices.

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BRASS Chicago Program Planning Committee:


Jennifer Boettcher
Anne L. Buchanan, Chair
Irwin Faye
Marilyn Hankel
Theo Haynes, Chair of the Business Reference and Services Section (BRASS)
Michael Lamb
Kate Pittsley


The BRASS Conference Program Planning Committee would like to thank the following for their assistance in gathering additional information: Tim Dixon and Tom Diamond. One of the sources used in compiling this bibliography is available at URL " gopher://fdic.sura.net:71/00/libraries/bankrate.txt," author Laurie McCellan.


bulletR 3 = Ratios, Ratings, & Reference
BRASS Program, ALA Annual Conference, June 26, 1995

Disclaimer: This publication has been placed on the web for the convenience of BRASS members. Information and links will not be updated. Posted 23 May 1997.