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Why are trend analysis and industry comparison important to financial ratio analysis?
Trend analysis assists financial managers and analysts see if a company's current financial situation is deteriorating or improving.
Cross-sectional analysis, or industry comparison, permits analysts to put the value of a firm's ratios in the context of its industry.
Define intermediation The financial system makes it probable for surplus and deficit economic units to come together, exchanging funds for securities, to their mutual advantage
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