What are the two primary financial perspectives used when performing financial ratio analysis? Please explain. How may years of financial reports should one review at the same time?© BrainMass Inc. brainmass.com March 4, 2021, 5:54 pm ad1c9bdddf
1) The two primary perspectives used in financial ratio analysis are:
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).
b) Cross-section analysis. Here we take the ...
In 225 words, the solution provides an excellent explanation for the two primary financial perspectives.