Asked by Hayden Molokach on Jun 25, 2024
Verified
Financial ratios are best used in comparison with:
A) A budget
B) History
C) Industry
D) All of the above.
Financial Ratios
Quantitative measures derived from financial statements used to assess a company's performance, financial health, and valuation.
Industry
A sector of the economy that produces a closely related set of raw materials, goods, or services.
- Compute financial ratios and understand their consequences.
Verified Answer
SM
Subaani MathyJun 26, 2024
Final Answer :
D
Explanation :
Financial ratios are most effective when compared with a budget to assess performance, with historical data to identify trends, and with industry standards to evaluate competitive position.
Learning Objectives
- Compute financial ratios and understand their consequences.