1) Briefly discuss the two primary perspectives one should use in financial ratio analysis. How many years should one review the financial statements of a firm?© BrainMass Inc. brainmass.com December 24, 2021, 4:56 pm ad1c9bdddf
1) The two primary perspectives used in financial ratio analysis are:
<br>a) Time-series analysis. This perspective shows the financial results of the firm over a certain time period. For example, profits (y-axis) can be plotted over the last 5 years (x-axis).
<br>b) Cross-section analysis. Here we ...