(d) Financial ratios should be interpreted in the context of all other relevant information that is available about the company. For example, management may have decided on a strategy of cutting profit margins in the short term in order to win market share. This would affect the current profit margin, but in the long run should result in higher sales and more profits. This point is well illustrated by the following case study: Philip Morris is the largest tobacco company in the US. However, in the early 1990s its main brand, Marlboro, suffered a large drop in market share. The company increased the prices of Marlboro cigarettes, hoping to maintain profits. However, this strategy was not successful, because customers were unwilling to pay the higher prices for premium brands, when cheaper brands were selling at much lower prices. So on 'Marlboro Friday (2nd April 1993) Philip Morris began a price war and overnight cut the price of its Marlboro cigarettes by 20%. $10 billion was immediately wiped off the market value of the company, but the price war changed market behaviour. Customers switched back to the lower-priced premium brands such as Marlboro and the cheap cigarette brands were largely destroyed. American Tobacco decided to quit the market altogether. By 1995 Marlboro had regained its lost market share and its profits and its share price had fully recovered. Required: In the light of above case study make review of the financial information needed (Financial ratio calculation not required.) While answering you may consider following: (7 Marks) Who is the user? customers