Determine why are financial ratios used to assess a, Ask an Expert

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1. Why are financial ratios used to assess a company's financial performance? Why are sales reports, profits, debts, or current liability reports insufficient? How have financial ratios been used in your company? Do you think they are an effective assessment of financial performance? If so, why? If not, why?

2. How might different stakeholders view the importance of different ratios? Discuss from the perspectives of a stockholder, a vendor, and an employee.

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Category:- Basic Finance
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