Financial ratios are a useful way to summarize large amounts of financial data to simplify comparisons of a venture's performance with itself and other firms over time.

Question

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Financial ratios allow for quick and easy comparison of financial performance between periods or with other companies in the same industry. They provide a snapshot of a company's financial health and can be used to monitor trends and identify areas that may require further analysis or improvement.

Financial Ratios Are a Useful Way to Summarize Large Amounts