Definition for : Benchmarking

Organisations (such as Central Banks, Datastream, Standard & Poor's or Moody's, etc) compiling the financial information supplied by a large number of companies publish the main financial characteristics in a standardised format of companies operating in different sectors of activity, as well as the norm (average) for each indicator or ratio in each sector. This is the realm of benchmarking. See also Comparative analysis.

(See Chapter 8 How to perform a financial analysis of the Vernimmen)

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