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Why is benchmarking challenging? It can be difficult to find an equivalent firm (based on business size, types of businesses, etc.) on which to compare.

  1. Why is benchmarking challenging?

    1. It can be difficult to find an equivalent firm (based on business size, types of businesses, etc.) on which to compare.

    2. Financial information about public firms is hard to locate.

    3. Ratio analysis does not allow you to compare firms of different sizes.

    4. It is very likely that your analysis will not allow you to come to any conclusion about your companys performance.

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