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    Ratios and Organizations

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    How can you compare an organization to its competitors?
    How can organizations with increasing sales run into financial difficulties?
    Which ratios might help find this situation?

    © BrainMass Inc. brainmass.com June 3, 2020, 7:40 pm ad1c9bdddf

    Solution Preview

    How can you compare an organization to its competitors?

    One has to compare the performance of the organization with its competitors.
    Profitability ratios try to measure how profitable the firm is. Note that their success in this endeavor depends on how accurately the financial statements reflect reality. They include the profit margin on sales, basic earning power, return on total ...

    Solution Summary

    This solution answers three questions on ratios and organizations, addressing to to compare an organization with competition, increasing sales and distinguishing ratios from each other.