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First, discuss the importance of financial analysis in strategic management. Next, discuss the three separate fronts on which an effective financial ratio analysis is conducted.

First, discuss the importance of financial analysis in strategic management.

Next, discuss the three separate fronts on which an effective financial ratio analysis is conducted.

Fronts- (1) How has each ratio changed over time? (2) How does each ratio compare to industry norms? (3) How does each ratio compare with key competitors?

Last, discuss the limitations of financial ratio analysis.

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