Question
What is / are the biggest advantages of using horizontal analysis (using %s of the total) and common sized statements AND using ratios like the
What is / are the biggest advantages of using horizontal analysis (using %s of the total) and common sized statements AND using ratios like the quick ratio and debt to equity ratio in analyzing financial statements? For example, in this weeks Excel homework problem, how could computing the raios for BOTH years, and using horizontal analysis and common sized statements help us to compare the two years AND compare this company to two similar (same industry) companies, but one of which is 2.5X the size, while the other is only 60% the size of our company?
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