Definitions of Some Common Industry- and Task-Specific Ratios Numerator Denominator Average operating income Ratio Business Risk Coefficient of variation of operating income Coefficient of variation of net income Coefficient of variation of revenues Standard deviation of operating income Standard deviation of net income Standard deviation of revenue Average net income Average revenue (continued) 16 There are many other industry- and task-specific ratios that are outside the scope of this reading. Resources such as Standard and Poor's Industry Surveys present useful ratios for each industry. Industry organizations may present useful ratios for the industry or a task specific to the industry. Exhibit 19 (Continued) Financial Sector Ratios Numerator Denominator Capital adequacy-banks Various components of Various measures such capital as risk-weighted assets, market risk exposure, or level of operational risk assumed Monetary reserve require Reserves held at central Specified deposit liabilities ment (Cash reserve ratio) bank Liquid asset requirement Approved "readily market- Specified deposit liabilities able" securities Net interest margin Net interest income Total interest-earning assets Denominator Not applicable Retail Ratios Numerator Same (or comparable) store Average revenue growth sales year over year for stores open in both periods Sales per square meter (or Revenue square foot) Total retail space in square meters (or square feet) Numerator Service Companies Revenue per employee Revenue Denominator Total number of employees Total number of employees Net income per employee Net income Hotel Numerator Average daily rate Occupancy rate Room revenue Number of rooms sold Denominator Number of rooms sold Number of rooms available Assignment 3 Industry-Specific Ratios: Provide explainination for each of the Industry-Specific Ratios provided in tables in pages 323-324 Citation is required copy-paste is not allowed, Due tomorrow 12/01/2021 at 12:00 noon Definitions of Some Common Industry- and Task-Specific Ratios Numerator Denominator Average operating income Ratio Business Risk Coefficient of variation of operating income Coefficient of variation of net income Coefficient of variation of revenues Standard deviation of operating income Standard deviation of net income Standard deviation of revenue Average net income Average revenue (continued) 16 There are many other industry- and task-specific ratios that are outside the scope of this reading. Resources such as Standard and Poor's Industry Surveys present useful ratios for each industry. Industry organizations may present useful ratios for the industry or a task specific to the industry. Exhibit 19 (Continued) Financial Sector Ratios Numerator Denominator Capital adequacy-banks Various components of Various measures such capital as risk-weighted assets, market risk exposure, or level of operational risk assumed Monetary reserve require Reserves held at central Specified deposit liabilities ment (Cash reserve ratio) bank Liquid asset requirement Approved "readily market- Specified deposit liabilities able" securities Net interest margin Net interest income Total interest-earning assets Denominator Not applicable Retail Ratios Numerator Same (or comparable) store Average revenue growth sales year over year for stores open in both periods Sales per square meter (or Revenue square foot) Total retail space in square meters (or square feet) Numerator Service Companies Revenue per employee Revenue Denominator Total number of employees Total number of employees Net income per employee Net income Hotel Numerator Average daily rate Occupancy rate Room revenue Number of rooms sold Denominator Number of rooms sold Number of rooms available Assignment 3 Industry-Specific Ratios: Provide explainination for each of the Industry-Specific Ratios provided in tables in pages 323-324 Citation is required copy-paste is not allowed, Due tomorrow 12/01/2021 at 12:00 noon