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Why are trend analysis and industry comparison important to financial ratio analysis?
Trend analysis assists financial managers and analysts see if a company's current financial situation is deteriorating or improving.
Cross-sectional analysis, or industry comparison, permits analysts to put the value of a firm's ratios in the context of its industry.
What is the Ratios based on historic cost accounts Ratios based on historic cost accounts don't give a true picture of trends, due to the effects of inflation and different acc
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