The industry average is a benchmark that reflects the typical performance metrics across a specific sector, providing insights into how individual companies compare to their peers. This average is calculated using various financial ratios and performance indicators, which help investors and analysts assess the health and efficiency of a company relative to others in the same industry. By analyzing the industry average, stakeholders can identify trends, make informed decisions, and spot potential areas for improvement within a manufacturing context.
congrats on reading the definition of industry average. now let's actually learn it.