Question by  brian (24)

What are typical construction industries ratios?

I am comparing construction companies and need to understand their ratios.


Answer by  theblip (295)

For finances there are way too many ratios that are defined and help tell you whether the company is doing well. The best tool for this is the annual Construction Industry Survey published by the CFMA (Construction Financial Management Association). It's exhaustive and has a lot of subgroup ratios too.

Reply by digmyspace (249):
Robert Morris & Associates (RMA) has a similar report. Apparently you cannot see them online, but you need to order them. Can you believe that the CFMA survey costs 250$. If you need lotsa information, it's worth it - it's a large book though!  add a comment

Answer by  rjeyanth (194)

If you're looking at mean asset turnover ratios for construction industries it's about 1. 6 on an average. There are several other financial ratios too. Their current asset ratios vary between 1. 1 and 1. 5 (a ratio more than 1 is good). Construction should operate at between 0. 6 and 1. 0 liquidity ratio.


Answer by  ferfer72 (2623)

This question is too vague. Construction costs? Labor costs? This answer varies from area to area. You'd need to re-ask this question with what area you are asking about.

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