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The computation of the various financial ratios on an isolated basis provides valuable information to evaluate a companys performance. You are required to answer the
The computation of the various financial ratios on an isolated basis provides valuable information to evaluate a companys performance.
You are required to answer the following questions:
- Which comparisons could be done with the calculated financial ratios of a company
(except this company itself)? (10%)
- Is there any limitations in the comparisons with other companies, in order to have a correct ratios comparison? (5%)
(your answer on subject 3 should not exceed 200 words)
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