Calculating Industry Ratios Using Mergent Online

 

1.                From the Joyner Library home page click “Databases” near the top of the page. Click on M, then click on Mergent Online.

2.               
Click the “enter mergent online” button near the top left to go to the search page.

3.                Many search methods are available.  The easier ways are by ticker symbol, company name, or CUSIP. For example, to search for The Cheesecake Factory, whose ticker is "CAKE," click the radio button for “Ticker Symbol” and type “CAKE" in the box. Click “Search” to start the search.

 

 

 

 

 

4.                Mergent finds one stock with ticker symbol CAKE. Sometimes it will also find one from another country. On the Basic Search page, selecting the checkbox “US exchanges only” would limit the results.

5.                The resulting page will give a business summary and a few key variables. Notice several tabs near the top. Click on the “Competitors” tab.

6.               
The resulting page will show all competitors, both US and global. Key variables are tabulated. Choose all competitors by clicking “add all to company Analysis List” near the bottom. Once done, the Company Analysis List changes from (0) to (19).

7.               

Roll over the word “expand” next to “Company Analysis List” to activate a drop-down menu. Click “Create Comparison Report” near the bottom of the menu.

8.               
A new window with “Comparison Report Criteria Selection Screen” at the top will open. From here, you can deselect any companies that you do not want to have in the comparison and then can generate an industry ratio report.  Under “Category,” select “Ratios.” Under “Sub-Category”, pick all the ratios you want to have in the report. Each must be individually added to the Report Criteria by clicking on the “Add Report Item” button after selecting each one.

9.                Multiple years can be chosen in the “Which year(s)” box by holding the ‘Ctrl’ key and choosing the years. Once all the comparison criteria are specified, click the box that says “Include average in heading”. Then click “Create Report.”

10.                A tabular report will be generated showing the companies chosen, years, and comparison criteria.  The top row below the headers will show the industry (peer) average. Ratios for each of the companies will appear below this row. Click "Download" near the top of the window to save the table in Excel.

 

11.                Questions?? Contact the Business Librarian, Jan Lewis, at lewisja@ecu.edu, phone: 252.328.2267, or the Joyner Library Reference Desk at askref@ecu.edu, phone: 252.3.6677.