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Why are trend analysis and industry comparison important to financial ratio analysis?
Trend analysis assists financial analysts and managers see whether a company's current financial situation is improving or deteriorating.
industry comparison or Cross-sectional analysis allows analysts to put the value of a firm's ratios in the context of its industry.
Develop a scenario for the future growth of the firm e.g. through using a SWOT analysis to identify an appropriate outcome (this will be covered in lectures) • If it is to grow
MV METALWORKS
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