Practicing Success
How are ratios used for various comparisons in business analysis? |
They are used to assess the quality of employees They are used to replace financial statements They are used to compare performance with benchmarks and standards They are used to set industry standards |
They are used to compare performance with benchmarks and standards |
Ratios should not be calculated for a single year alone. When multiple years' figures are harmonized, they become instrumental in revealing identifiable trends within the business. Understanding these trends becomes invaluable for projecting the future trajectory of the business, rendering this feature highly advantageous. |