Ratios by themselves tell a great deal about the financial well being of a company. For meaningful analysis, the ratios should not be compared with a standard. Two standards commonly used are the rate of return on U.S Treasury bills and the yield to maturity on U.S Treasury bonds.

The Answer is

A) True

B) False: Ratios by themselves tell little about the financial well being of a company.

C.) False: For meaningful analysis, the ratios should be compared with a standard.

D.) False: Two Standards commonly used are the past history of the company and industrial averages

E.) B, C and D