Indicative industry ranges

The ranges shown are broad reference points intended to support a high-level review of the figures entered. They are not industry standards, lending covenants, or a substitute for comparison with the entity's own history, budget, peers or financing terms.

Results can vary materially depending on an entity's size, business model, accounting policies, maturity, location and operating conditions. A result outside a displayed range does not necessarily indicate a problem, and a result within a range does not confirm financial strength.

⚠ Provenance. 3 of 81 ranges cite a published source. The remainder are indicative estimates compiled from general ratio conventions, and should be treated as review prompts rather than observed benchmarks.

Industry / sector	Current ratio x - higher is better	Gross profit margin % - higher is better	EBIT margin % - higher is better	Net profit margin (after tax) % - higher is better	Gearing % - lower is better	Leverage ratio x - lower is better	Interest cover (EBITDA basis) x - higher is better	Operating cash flow / current liabilities x - higher is better	Return on equity % - higher is better
Diversified industrials	1.2x - 2.0x •	25.0% - 40.0% •	8.0% - 15.0% •	4.0% - 10.0% •	20.0% - 50.0% •	1.5x - 3.0x •	4.0x - 10.0x •	0.4x - 0.8x •	8.0% - 15.0% •
Infrastructure & utilities	0.7x - 1.2x •	35.0% - 55.0% •	20.0% - 35.0% •	8.0% - 18.0% •	40.0% - 70.0%	3.0x - 5.0x •	2.0x - 5.0x •	0.3x - 0.6x •	6.0% - 12.0% •
Retail	1.0x - 1.6x •	30.0% - 45.0% •	4.0% - 9.0% •	2.0% - 6.0% •	15.0% - 45.0% •	1.0x - 2.5x •	3.0x - 8.0x •	0.5x - 1.0x •	10.0% - 20.0% •
Resources & mining	1.5x - 2.5x •	35.0% - 55.0% •	20.0% - 35.0% •	10.0% - 25.0% •	10.0% - 35.0%	0.5x - 2.0x •	6.0x - 15.0x •	0.6x - 1.2x •	8.0% - 20.0% •
Healthcare	1.2x - 2.0x •	40.0% - 60.0% •	10.0% - 20.0% •	6.0% - 14.0% •	15.0% - 40.0% •	1.5x - 3.0x •	5.0x - 12.0x •	0.4x - 0.8x •	8.0% - 16.0% •
Technology	1.5x - 3.0x •	55.0% - 75.0% •	5.0% - 20.0% •	0.0% - 15.0% •	0.0% - 20.0% •	0.0x - 1.5x •	8.0x - 20.0x •	0.3x - 0.7x •	5.0% - 15.0% •
Property / REIT	0.5x - 1.2x •	60.0% - 80.0% •	35.0% - 55.0% •	20.0% - 40.0% •	25.0% - 45.0%	5.0x - 7.0x •	2.0x - 5.0x •	0.2x - 0.5x •	5.0% - 10.0% •
Financials (ex-banks)	1.0x - 1.8x •	50.0% - 70.0% •	15.0% - 30.0% •	10.0% - 25.0% •	50.0% - 100.0% •	2.0x - 4.0x •	2.0x - 6.0x •	0.3x - 0.7x •	8.0% - 16.0% •
Not sure / general	1.0x - 2.0x •	30.0% - 50.0% •	8.0% - 18.0% •	3.0% - 12.0% •	20.0% - 50.0% •	1.5x - 3.5x •	3.0x - 8.0x •	0.3x - 0.7x •	6.0% - 15.0% •

• marks a range with no published source.

Formulas used

Ratio	Formula as used in the tool	Better is
Current ratio	Total current assets / total current liabilities	Higher
Gross profit margin	Gross profit / revenue	Higher
EBIT margin	EBIT / revenue	Higher
Net profit margin (after tax)	Net profit after tax / revenue	Higher
Gearing	(Current + non-current borrowings) / total non-current assets	Lower
Leverage ratio	Net debt (borrowings - cash) / EBITDA	Lower
Interest cover (EBITDA basis)	EBITDA / interest expense	Higher
Operating cash flow / current liabilities	Net cash from operating activities / total current liabilities	Higher
Return on equity	Net profit after tax / total equity	Higher

Where a comparison is not shown

Some ratios are suppressed rather than displayed, because the result would be misleading:

-Where EBITDA is zero or negative, the leverage ratio and interest cover are not calculated or compared.
-Where equity is zero or negative, gearing and return on equity are not compared - the denominator prevents a meaningful comparison.
-Where gross profit is not disclosed, it is not inferred unless revenue and cost of sales are clearly identifiable on the statements provided.
-For Property / REIT, gearing uses borrowings over total assets. Statutory net margin may be affected by fair-value movements.
-For Financials, liquidity and leverage ratios may be less comparable where financing assets and liabilities form part of ordinary operations.