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INDUSTRY PERFORMANCE MEASURES

A range of performance measures, mainly expressed as ratios, can be produced from the data available from businesses' financial statements. A selection of these are presented in this chapter for each manufacturing industry subdivision. Definitions are provided in the Glossary. Information about the uses and limitations of these measures can be found in Explanatory Notes paragraphs 35 to 40.

The manufacturing industry's performance ratios for 2006-07, as set out in detail in table 2.1 are summarised as follows:

• The highest profit margins were recorded by Beverage and tobacco product manufacturing (20%) and Primary metal and metal product manufacturing (13%). Transport equipment manufacturing was the industry with the lowest profit margin in 2006-07 (3%).
• The interest coverage in 2006-07 was highest for Primary metal and metal product manufacturing (12.5 times) and Fabricated metal product manufacturing (11.7 times).
• The highest value of IVA to selected labour costs occurred in the Petroleum and coal product manufacturing industry, where IVA exceeded selected labour costs by 3.2 times. The next highest value (3.1 times) occurred in Primary metal and metal product manufacturing. Transport equipment manufacturing and Furniture and other manufacturing shared the lowest value (1.4 times) for this ratio.
• Of all manufacturing industries shown, Petroleum and coal product manufacturing (at $101,000) recorded the highest selected labour costs per person employed, followed by Primary metal and metal product manufacturing ($79,000). The industry with the lowest value for this ration was Textile, leather, clothing and footwear manufacturing ($35,000). For total manufacturing, the estimate was $55,000.
• Basic chemical and chemical product manufacturing recorded the highest investment rate (value added) of 25.0% in 2006-07, slightly ahead of Primary metal and metal product manufacturing which recorded a value of 24.8%. Furniture and other manufacturing, with an investment rate of 8.8%, had the lowest value.