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Comparing Financial Ratios/Benchmarking.

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What are the advantages and disavantages when comparing a company's financial ratios, and what are the potential benchmarks that you could use?

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Solution Summary

Solution involves a discussion on benchmarking, and some of the ways in which it can be conducted.

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Here's some of the core stuff you'll need for benchmarking:

Benchmarking is not a competitive analysis. Benchmarking is the basis for change. It is about learning. The organization performing the benchmark analysis uses the information found in the process to establish priorities and target process improvements that can change business or manufacturing practices. Benchmarking commonly takes one of four forms.

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