RMA (Risk Management Association) is a professional organization with over a century of history, serving more than 1,700 financial institutions worldwide and committed to enhancing the risk management capabilities of its member institutions. *Annual Statement Studies*, first published in 1919, has become a benchmark for financial data comparison in the financial industry. Its authority stems from its unique data source: directly sourced from over 135,000 anonymous financial statements of commercial borrowing customers submitted by RMA member institutions. This not only ensures data confidentiality but also guarantees authenticity and objectivity, making it an important reference in the credit risk field. Unlike the arithmetic mean, RMA adopts the median (the middle value of sorted data, reflecting the typical level and unaffected by extreme values) and quartiles (dividing data into four equal parts, with the interval from the upper quartile to the lower quartile covering 50% of enterprises, regarded as the industry's "normal range". Enterprises whose ratios exceed this range require further analysis). This method reduces the distortion of data by extreme values, more accurately reflects the distribution of ratios, and provides more robust industry benchmarks. Balance sheets and income statements are presented in a "common-size" format (each item is expressed as a percentage of total assets for balance sheets, and as a percentage of sales for income statements), while also providing 19 financial ratios widely used in the financial services industry. The benchmark data is only a general guideline and supplementary analysis tool, not an absolute industry standard or credit advice. When using the data, attention shall be paid to its limitations: the data comes from voluntary submissions by member institutions (not random sampling), enterprises are classified by their main business (ignoring diversified operations), some industries have small sample sizes (affecting representativeness), extreme financial statements may affect comprehensive data, and there are differences in accounting methods and business models among enterprises in the same industry. Therefore, due diligence shall be carried out in combination with other analysis methods and the specific circumstances of the enterprise. Accurate industry classification is the foundation of financial ratio benchmark analysis. RMA adopts the North American Industry Classification System (NAICS) as its data organization framework. Developed jointly by the United States, Canada and Mexico, NAICS is production-oriented and groups enterprises based on the similarity of their goods or service production. Its hierarchical structure is as follows: the first two digits represent the economic sector (e.g., manufacturing code 31-33), the third digit represents the subsector, the fourth digit represents the industry group, the fifth digit represents the NAICS industry, and the sixth digit represents the country-specific industry. Based on the 2017 NAICS Manual, RMA covers 20 major fields including agriculture, mining, construction, manufacturing, wholesale and retail trade, finance and insurance, professional services and more. Comparison with SIC (Standard Industrial Classification): NAICS is a major upgrade of SIC, better adapting to the development of service and technology industries, with more detailed and modern classification. Comparison with GICS (Global Industry Classification Standard, developed by MSCI and S&P): GICS is market and investment-oriented and is used for portfolio management; NAICS is production-oriented and more suitable for credit analysis and operational comparison. RMA's publications cover detailed data for more than 597 industries. If an industry has fewer than 30 valid samples, relevant benchmark data will not be released to ensure representativeness. The 19 core ratios defined by RMA are divided into five categories to comprehensively evaluate a company's financial performance: Current ratio: Current assets / Current liabilities. The higher the ratio, the stronger the short-term solvency. Attention shall be paid to the composition and quality of current assets. Quick ratio: (Cash + Accounts receivable) / Current liabilities. A stricter measure of immediate solvency after excluding inventory. A ratio below 1 may indicate liquidity stress. Accounts receivable turnover and days sales outstanding (DSO): Turnover ratio = Sales / Accounts receivable; Days = 365 / Turnover ratio. Reflects the speed of collection. An extended DSO may increase the risk of bad debts. Inventory turnover and days inventory outstanding (DIO): Turnover ratio = Cost of goods sold / Inventory; Days = 365 / Turnover ratio. A high turnover ratio may indicate efficient inventory management, while a low turnover ratio may signal slow-moving inventory. Accounts payable turnover and days payable outstanding (DPO): Turnover ratio = Cost of goods sold / Accounts payable; Days = 365 / Turnover ratio. A significantly longer DPO than peers may reflect tight cash flow or favorable credit terms. Sales / Working capital: Sales / (Current assets - Current liabilities). Measures working capital utilization efficiency. This ratio is non-linear, with the lowest positive value being optimal. EBIT / Interest coverage ratio: EBIT / Interest expense. The higher the ratio, the stronger the debt-servicing capacity. (Net income + Depreciation and other non-cash expenses) / Current portion of long-term debt: Reflects the coverage of maturing long-term debt by operating cash flow. Fixed assets / Net worth: Net fixed assets / Tangible net worth. A lower ratio indicates a more robust financial structure. Total liabilities / Tangible net worth: The higher the ratio, the greater the risk to creditors. Pre-tax profit / Tangible net worth: Reflects return on capital, which needs to be analyzed in combination with other indicators. Pre-tax profit / Total assets: Measures asset utilization efficiency, which may be affected by depreciation or non-recurring items. Sales / Net fixed assets: Evaluates the production efficiency of fixed assets. Sales / Total assets: Comprehensively reflects the revenue-generating capacity of assets. Depreciation and other non-cash expenses / Sales: Reflects the proportion of non-cash expenses and indicates asset intensity. Executive compensation / Sales: Evaluates compensation policies and cost control. RMA *Annual Statement Studies* provides objective and reliable benchmarks for industry financial comparisons, leveraging anonymous data from frontline financial institutions, rigorous statistical methods (median and quartiles) and detailed NAICS industry classifications. However, users should clarify its positioning as an "auxiliary tool", understand the limitations of the data and analyze in combination with the specific circumstances of the enterprise. A deviation of a company's ratio from the industry median is not the end of analysis, but the starting point for further inquiry (it is necessary to determine whether it stems from unique competitive advantages or potential operational risks). By systematically applying RMA's 19 ratios and industry benchmarks, analysts can build a multidimensional financial profile and identify trends and anomalies; whether for credit risk assessment, operational efficiency optimization or investment decision support, RMA *Financial Ratio Benchmarks* provides key quantitative language and a reference framework to help decision-makers make more informed judgments in a complex business environment. The value of the data ultimately depends on intelligent interpretation and application. © 2021 Meishun (Hong Kong) Management Consulting Co., Ltd. and Meishun (Hangzhou) Management Consulting Co., Ltd. All rights reserved. Meishun Meiyin (Hangzhou) Consulting and Management Company is a domestic subsidiary of Hong Kong Meishun Management Consulting Company under the same ultimate beneficial owner. 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