Question: Standard Industry Classification codes (SIC) are used for financial statement benchmarks analysis. Your company's financial results would need to be compared to others. SICs provide

Standard Industry Classification codes (SIC) are used for financial statement "benchmarks" analysis. Your company's financial results would need to be compared to others. SICs provide the format to compare a particular company's financial data to its respective SIC averages.

Explain how using SIC codes or competitors' financial statements as benchmarks can give you insight into how management is running a company.

How can ratio analysis help you determine what improvements need to be made?

Discuss the strengths and weaknesses of using SIC as a benchmark for your financial analysis.

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