Operating Metrics in different industries

Before you invest in a stock, you need to check how it performs based on other companies in the same industry. You need to compare its results with the industry metrics

Let me explain some of them with the examples of a few industries

Bank :

1. Efficiency Ratio
   http://www.investinganswers.com/financial-dictionary/ratio-analysis/bank-efficiency-ratio-2556

2. Return on assets
   http://www.investopedia.com/university/ratios/profitability-indicator/ratio3.asp

3. Average cost of funds
   http://www.investopedia.com/terms/c/costoffunds.asp

Real Estate:

1. Occupancy rate
   http://www.investopedia.com/terms/o/occupancy-rate.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186

2. Rent per square foot
   Average: Mean average or the sum of all the value divided by the number of values

3. Commercial: space within a property used by a organizations concerned with or engaged in commerce.
   Rent: the monthly fee for the use of a space where the transaction is between two independent parties with an arms length transaction.
   Formula:

= R1/SF1+ R2/SF2… + R∞/SF∞

Where R is the rent for the space,

and SF is the Square Foot of the rented space

} ÷ N = X

Where N is the number of commercial properties being rented,

and X is the Average Rent per Square Foot of Commercial Space

1. Cost per square foot
   Price per square foot is a calculation of the value of each square foot of area of a house, condo or any building. It is a simple, but useful calculation that is mostly used to compare similar properties. The price per square foot can be calculated on the list price or the selling price.

Airlines:

1. Seat miles
   Available seat miles (ASM) or Available seat kilometres (ASK) is a measure of an airline flight's passenger carrying capacity. It is equal to the number of seats available multiplied by the number of miles or kilometres flown.

2. Load factor
   In aeronautics, the load factor is defined as the ratio of the lift of an aircraft to its weight [1] [2] and represents a global measure of the stress ("load") to which the structure of the aircraft is subjected:
   {\displaystyle n={\frac {L}{W}}} n={\frac {L}{W}}
   where:

n = Load factor
L = Lift
W = Weight

1. Traffic

Retailers:

1. Same store sale
   Same-store sales is a business term which refers to the difference in revenue generated by a retail chain's existing outlets over a certain period (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year.

2. Basket size
   Conversion percentage is calculated as this: (Number of purchases ÷ number of footfalls) x 100. Average basket size and Average ticket size. Average basket size refers to the number of items getting sold in a single purchase. It is the equivalent of total units sold ÷ number of invoices.

3. Sales/Square foot
   Sales per square foot is a popular sales metric used in the retailing industry. Sales per square foot is simply the average revenue a retail business creates for every square foot of sales space.