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Analysing performance through ratios

Ratios are an effective way of analysing financial statements. A ratio is 2 figures compared to each other and can either be in absolute terms or in % terms.

When analysing performance by the use of ratios it is significant to use comparisons. A single ratio is meaningless and is only of use when compared with other ratios, competitors and over time.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9580506

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