One way to make ratio analysis more meaningful is to compare the ratios of one firm to those of other firms in the same industry.

Name: One way to make ratio analysis more meaningful is to compare the ratios of one firm to those of other firms in the same industry.
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In order to gain a competitive advantage, firms should compare the results of their ratio analysis with competing firms in their industry. Firms with market commonality and resource similarities should also have comparable ratios.

One Way to Make Ratio Analysis More Meaningful Is to Compare