Northspread
Formula sheet/NISM Series XV: Research Analyst/Industry Analysis
[ INDUSTRY ANALYSIS ]

Top-Down Market Sizing & Passenger/Cargo Km

Market Size=Target Population×Penetration Rate×Average Annual Expenditure per User\text{Market Size} = \text{Target Population} \times \text{Penetration Rate} \times \text{Average Annual Expenditure per User}
PKM/TKM=Total Passengers(or Cargo in MT)×Distance Travelled in KilometresPKM / TKM = \text{Total Passengers} (\text{or Cargo in MT}) \times \text{Distance Travelled in Kilometres}
Variables

Aviation/Transport unit metrics: Revenue per PKM = Passenger Revenue / Total PKM; Load Factor = PKM / Available Seat Km.

Exam note

Enables fundamental comparison of operating capacity and utilization efficiency across airlines and freight operators.

Worked examples
Top-Down Market Sizing for Diagnostic Healthcare

In a country of 140 Crore people, 8% of the adult population (80 Crore adults) is estimated to require an annual cardiac diagnostic checkup. Currently, 25% of eligible patients undergo testing. If the average realization per test is Rs 1,500, calculate the current market size and total addressable potential market size.

Banking Net Interest Margin (NIM) and CASA Ratio

Pragati Commercial Bank reports Interest Income of Rs 14,200 Cr, Interest Expenses of Rs 8,600 Cr, and Average Earning Assets of Rs 1,60,000 Cr. Total Deposits stand at Rs 1,80,000 Cr, consisting of Current Accounts Rs 28,000 Cr and Savings Accounts Rs 52,000 Cr. Calculate NIM and CASA ratio.