In addition to comparison with industry ratios, it is also helpful to analyze ratios using
A) trend analysis.
B) historical comparisons.
C) neither; only industry ratios provide valid comparisons.
D) both a and b.

Question

Quizplus · Accepted Answer

Trend analysis and historical comparisons provide additional context and insight into a company's performance, beyond just comparing to industry ratios. Monitoring the direction and magnitude of changes in ratios over time can reveal patterns and potential problems. Comparing current ratios with past ratios can highlight progress or regression, and provide an understanding of how the company has changed over time.

In Addition to Comparison with Industry Ratios, It Is Also