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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.
The number of properties sold every month indicates that Thorne Co experiences seasonal trends in its business. There is an sign that property sales are at a low level in winter an
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