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Fundamentals of Financial Manageme...
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Fundamentals of Financial Manageme...
Give some examples that illustrate how (a) seasonal factors and (b) different growth rates might distort a comparative ratio analysis. How might these problems be alleviated?
(a)
To identify: Some examples of seasonal factors that might distort a comparative ratio analysis and its alleviation.
Financial Ratio Analysis: Financial ratio analysis is one of the tools of financial analysis of a firm. It represents the relationship between two or more items of the financial statement.
- Seasonal factor refers to the factors which vary with a change in situation like some business...
(b)
To identify: Some examples of different growth rates that might distort a comparative ratio analysis and its alleviation.
Financial Ratio Analysis: Financial ratio analysis is one of the tools of financial analysis of a firm. It represents the relationship between two or more items of the financial statement.
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