Analyze the concepts of financial ratios

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Financial ratios by themselves provide very little information about a firm. We need to compare ratios across firms in similar industry sectors. The two methods for analyzing financial ratios for a firm are: time trend analysis and similar group analysis. Elaborate on how each of these methods can be helpful in understanding how a firm is performing relative to others using financial ratios analysis. The concepts of financial ratios analyze can provide insight into the health of the firm. How and why?

Reference no: EM1345143

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