Industrial companies success is measured using many of the same metrics as other companies.

Revenue growth, profit margins, and returns are all important to industrial companies.

However, industrial analysts like to supplement their view of revenue with more forward-looking change in order backlog and book to bill ratios.

In returns, they may decide to analyze depreciation as part of their margin.

For example, using an EBIT a margin.

This isolates core operating performance, including depreciation, and it recognizes that industrials operate an asset heavy industry where depreciation may be seen as core to operations for valuation.

Many of the same techniques are used as in other sectors to help deal with the financing arm of the business, use of PE and some of the parts valuation is important.