To calculate: Take the difference between the company's current period number for a metric and the number it is closest to in the industry range. Divide the difference by the industry number and multiply by 100 to calculate a percentage.
Financial Indicator Current Industry Distance from
Current Ratio 3.32 1.40 to 2.00 +66.00%
3.32 - 2.00 = 1.32
1.32 / 2.00 = 0.66
0.66 * 100 = 66.00%
Distance from Industry = +66.00%
The plus sign (+) signifies a positive result - the company is doing BETTER than average for this metric. The minus sign (-) signifies a negative result - the company is doing WORSE than average for this metric.
So, in this case, the company's current ratio is 66% better than the average in its industry.