INDUSTRY RATIOS
A range of performance measures, mainly expressed as ratios, can be produced from the data available from businesses' financial statements. A selection of these are presented in table 2.2 for each industry. Definitions are provided in the Glossary. Information about the uses and limitations of these measures can be found in Explanatory Notes paragraphs 24-29.
At the Total selected industries level, most of the industry ratios presented either changed little or showed moderate increases over their values in 2004-05.
Profit margin showed the most substantial movement (from 9.8% to 10.8%), reflecting increases in the two top-ranked industries: Mining (34.9%, up from 29.5%), and Property and business services (23.2%, up from 17.9%). The smallest profit margins were returned in Wholesale trade and Retail trade (4.3% and 4.1% respectively).
Values for interest coverage ranged from 13.8 times in Mining to 2.6 times in Agriculture, forestry and fishing.
Electricity, gas and water supply was the industry which devoted the highest proportion of its IVA to acquiring capital assets in 2005-06, with an investment rate (value added) of 55% (up from 48% in the previous year), followed by Mining (at 38%). Construction recorded the lowest value (8%) for this ratio.
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