ABSTRACT
Business unit statistics and ratios, such as order backlog and inventory turnover, can by themselves be helpful. However, additional insights can usually be gained by comparing company statistics and ratios with industry averages. For example, even if marketing professionals' sales and profits have been increasing, how do they look in relation to comparative companies. A comparison of statistics and ratios may point out that they’re doing far better than most, indicating that, at least in this industry, they’re doing many things right. Perhaps marketing professionals' business unit does not adjust sales, profits, for inflation. If so, think about making such compensations. Inflation can distort information. For example, in 1983, the president of a small firm was shocked to learn that between 1973-1982 his company’s sales, when adjusted for inflation, were down over 50 percent.
