A calculated ratio value tells us little about a firm, Financial Management

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A calculated ratio value tells us little about a firm

A calculated ratio value tells us little about a firm unless we compare it to something. That 'something' is usually an analysis of ratios from the firm's past (time trend), or ratios from the firm's industry (industry averages). When would we prefer one comparison to the other?

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Financial Management: A calculated ratio value tells us little about a firm

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