For information on which financial ratios are included in this dataset and where to find the data, please visit our US Financial Ratio FAQ article.

We source financial ratios for US Industry Reports from the IRS Statistics of Income (SOI) Tax Stats and the US Census Bureau. We pull the latest available data from each source when our team of analysts update a report.

Because agencies take time to process and release this information, there is usually a delay of a few years. As a result, we update the product annually once the new data becomes available. This typically occurs between January and March, providing data for two years prior.

Our data model brings together information from these authoritative sources in a structured way to produce industry-level financial ratios.

Within the model, input data can be segmented into two categories:

The target population consists of all returns of active corporations organized for profit that file one of the 1120 forms included in the study. Estimates include US corporate business activities, certain foreign activities of domestic corporations, and foreign corporations with US business activities.

Our approach to estimating financial variables involves several steps designed to ensure reliability and consistency. Data is reviewed and adjusted to minimize the impact of extreme values, using established statistical techniques, like winsorization.

We then apply scaling methods to maintain a balanced distribution of results.

When forecasting, we typically begin with the Income Statement, as it closely reflects industry trends. The Balance Sheet is developed using insights from the Income Statement and other relevant factors.

To ensure comparability, we normalize sections of the financial statements so that key accounting relationships are preserved. Special attention is given to business revenue to prevent distortions in related figures.

Net Income estimates are developed through a multi-step process, drawing on stable indicators and refined in alignment with overall statement dynamics. This helps maintain transparency and focus on the most important metrics.

In some cases, source data can be restated from previous years, which can alter previously stated historic values from time to time. Additionally, IBISWorld is constantly reviewing internal models to ensure that they capture the most up-to-date information to create estimates. This can also contribute to revisions, meaning that the most recent update always reflects our best estimates with the information available at publish time.

Broader changes to our methodology can also result in data revisions from one report update to the next. Any updates made to our data models and methodology are done to improve data quality in our reports. Our latest methodology update was implemented in 2025, explaining any differences you may notice between report versions.

Please refer to the “How does IBISWorld standardize financial data across an industry?” section outlined below to learn more about this updated methodology.

IBISWorld has a common-size reconciliation process that rebalances and normalizes data from financial statements. The process includes converting raw dollar amounts from various companies into uniform percentages to create a standardized "average" for the entire industry.

As a result, instead of saying "this industry spent $50.0 million on rent," we say, "this industry spends 15.0% of its revenue on rent,” and this ensures that all the individual expense categories (like utilities, advertising, and wages) add up to exactly 100.0% of the total.

Common-size reconciliation was implemented in 2025 and may cause some changes to historic financial ratio values prior to 2022.

For example, Tangible Net Worth is a figure we used to present as a dollar value and now present in percentage terms.

The new reconciliation process ensures that all line items sum up to their relevant parent item.

Total Assets =

Cash and Equivalents

+ Notes and accounts receivable

- Allowance for bad debts

+ Inventories

+ Government Obligations

+ Tax Exempt Securities

+ Other current assets

+ Loans to shareholders

+ Mortgage and real estate loans

+ Other investments

+ Property, Plant and Equipment

- Accumulated depreciation

+ Depletable assets

- Accumulated depletion

+ Land

+ Intangible assets (Amortizable)

- Accumulated amortization

+ Other assets

Total Liabilities and Net Worth =

Accounts payable

+ Mort, notes, and bonds under 1 yr

+ Other current liabilities

+ Loans from shareholders

+ Mort, notes, bonds, 1 yr or more

+ Other liabilities

+ Net worth

Net Worth =

Capital stock

+ Additional paid-in capital

+ Retained earnings, appropriated

+ Retained earnings, -unappropriated

- Cost of treasury stock

Total Revenue =

Business receipts

+ Dividends

+ Interest Income

+ Rent Income

+ Royalties

+ Net short-term capital gain less net long-term loss

+ Net long-term capital gain less net short-term loss

+ Net gain, noncapital assets

+ Other receipts

Net Income =

Total Receipts

- Cost of goods

- Compensation of officers

- Salaries and wages

- Repairs

- Bad debts

- Rent paid

- Taxes paid

- Interest paid

- Charitable contributions

- Amortization

- Depreciation

- Depletion

- Advertising

- Pension, profit-sharing, etc., plans

- Employee benefit programs

- Net loss, noncapital assets

- Other deductions

We estimate net income using an iterative technique that leverages external predictors and reconciliation with income statement dynamics to produce a consistent, reliable figure.

While IBISWorld applies a consistent methodology across industries, the Finance and Insurance sector (52) requires tailored treatment to ensure financial data accurately reflects how businesses operate.

In most industries, revenue is largely captured through business receipts from the sale of goods or services. In finance-related industries, however, traditional business receipts may be minimal or zero, while interest income, fees, or capital gains represent the primary sources of operating revenue. This reflects how the IRS reports income for these activities.

To ensure industry financial statements remain meaningful and comparable, IBISWorld applies sector-specific judgement when classifying revenue components within finance industries.

Dropped coverage: Financial ratio coverage is known to be limited in at least 14 industries due to limited underlying data and constraints affecting estimate reliability.

Incomplete data within certain asset groups is primarily the result of reduced reporting coverage by the IRS. Coverage may be affected when industries’ taxes are filed as sole proprietors, not corporations. The IRS may also aggregate data in certain industries to protect privacy.

As a result, you may notice dropped coverage in the following industries: 52429, 71113, 71133, 71141, 71151, 71211, 71212, 71219, 71311, 71312, 71321, 71329, 71391, 71392.

IBISWorld does not "censor" or manually suppress large swings in ratio values. We present the data as calculated to maintain full transparency.

To mitigate volatility, you can refer to the 3-year, 5-year, and 10-year historical averages provided in the table.