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In general, what are the limitations of financial ratios? Which limitations apply to the restaurant industry

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6Q: Why is it sometimes misleading to compare a company’s financial ratios with those of other firms...

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Why is it sometimes misleading to compare a company’s financial ratios with those of other firms that operate in the same industry?
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