Ratios are meaningful only when used to compare performance with rates of prior years and with the industry averages.

Name: Ratios are meaningful only when used to compare performance with rates of prior years and with the industry averages.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

Ratios provide insights into a company's financial health when compared to its own historical data or industry standards. Without such comparison, ratios may not be meaningful or relevant.

Ratios Are Meaningful Only When Used to Compare Performance with Rates