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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:

  1. Which comparisons could be done with the calculated financial ratios of a company

(except this company itself)? (10%)

  1. 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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