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How can you compare two companies when they are not the same

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Reference no: EM132380897

Question :

Titanic Company has net income of $50,000,000.

Rowboat Company has net income of $50,000.

Do you think Titanic Company performed better than Rowboat Company?

What if Titanic Company has total assets of $1 billion and Rowboat Company has total assets of $250,000?

Is it appropriate to compare companies of different size?

Wouldn't you expect a national or international company to generate higher net income than a small, local business?

So how can you compare two companies when they are not the same size?

Reference no: EM132380897

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