Standard Industry Classification codes (SIC) are used for financial statement benchmarks analysis. Your companys financial results would need to be compared to others. SICs provide the format to compare a particular companys financial data to its respective SIC averages.

Explain how using SIC codes or competitors financial statements as benchmarks can give you insight into how management is running a company.

How can ratio analysis help you determine what improvements need to be made?

Discuss the strengths and weaknesses of using SIC as a benchmark for your financial analysis.