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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.
What action(s) should be taken if analysis of pro forma financial statements reveals positive trends? Negative trends? When examine the pro forma statements, managers habi
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