Why is ratio analysis so significant?
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 1MC: Why are ratios useful? What three groups use ratio analysis and for what reasons?
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Why is ratio analysis so significant?
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Step 1
Ratio Analysis: This refers to the performance measurement of the business, in order to know the trends of the various items in the business in comparison to the other business in the same industry.
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