Why do analysts calculate financial ratiosthe comparative, Ask an Expert

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Why do analysts calculate financial ratios?

The comparative measures are known as Ratios. Since the ratios show relative value, they permit financial analysts to compare information which could not be compared in its raw form. For instance, ratios may be employed to compare one ratio to a related ratio, a firm's performance to management's goals, a firm's past and present concert, or a firm's performance to the same firms.

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Financial Management, Finance

Category:- Financial Management
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