Why is it more important to compare ratios to competitors

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Problem

Use the Internet to research an annual report of a retail company.

Then, imagine you are an investor or creditor; suggest the ratios that you believe would provide an investor or creditor with the most important information needed to make accurate predictions about the company's financial condition. When analyzing a company, is it more important to compare the ratios to competitors or to the company's previous history?

Provide a rationale for your response.

Note: Students using the online discussion thread must provide a link or instructions to the researched report.

Reference no: EM131643379

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