question archive What is the difference between cross-sectional and time-series ratio analysis? What is benchmarking?

What is the difference between cross-sectional and time-series ratio analysis? What is benchmarking?

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What is the difference between cross-sectional and time-series ratio analysis? What is benchmarking?

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Cross-sectional comparisons are made by comparing similar ratios for firms within the same industry, or to an industry average, as of some point in time. Time-series comparisons are made by comparing similar ratios for a firm measured at various points in time. Benchmarking is the term used to describe this cross-sectional comparison with competitor firms.