Ratio analysis when different sources show different ratios
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QUESTION
Where do you suppose the value in ratio analysis lies when different sources show different ratios for the same period / organizations?
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Solution Summary
The solution examines ratio analysis when different sources show different ratios.
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Ratio analysis is a process or method by which relationship between two items in the financial statements are computed, determined and presented. Ratios look at the relationships between individual values and relate them to how a company has performed in the past and might perform in the future. Ratios communicate the overall economic situation of the company more ...
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