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Market Profile Data Product Documentation
A location quotient shows the concentration of an attribute in a particular location compared to its concentration at the national level. It is calculated by dividing the local percentage by the national percentage. A location quotient of 1 indicates that the attribute has the same concentration at the local level as it does at the national level. Location quotients of less than one indicate lower concentrations, and location quotients of greater than one indicate higher concentrations.
Example: The metropolitan statistical area San Jose - Sunnyvale - Santa Clara in California has a high concentration of employment in the information sector compared to the United States as a whole. Its location quotient for employment in that sector is 4.48, which means that there are 4.48 times as many people employed in the information sector than nationally.