Why is it so important to compare a firm's financial statements with those of previous years, those of competitors, and the average of all firms in the industry in which the firm operates?

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section15.8B: Financial Ratios
Problem 1CC
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Why is it so important to compare a firm's financial statements with those of previous years, those of competitors, and the average of all firms in the industry in which the firm operates? 

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