Based solely on the results of calculating financial ratios

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Reference no: EM131010343

There are about 20 financial ratios commonly used to assess one company's performance compared to another company in the same industry, or to itself over time.

Why or why not do you consider it sound business practice to make financial decisions based solely on the results of calculating financial ratios, for instance, whether to invest in a company or loan money to it?

Reference no: EM131010343

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