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Ratio analysis: How do you calculate ratios of a company (formula, steps etc.), what do ratios indicate about a company (when compared to a previous

Ratio analysis:

How do you calculate ratios of a company (formula, steps etc.), what do ratios indicate about a company (when compared to a previous yr) and how to calculate industry averages ratios?

(It's comparing two companies through ratios for the past two years)

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