Question: 1. Discuss briefly the two perspectives that can be taken when performing a ratio analysis.
2. Where can we obtain industry norms?
3.What is the approach by which we can effectively interpret a firm's financial ratios
4. What cautionary step should be taken when standards (norms) are used to interpret a firm's financial ratios? Discuss briefly.
5. What is liquidity, and what is the rationale for its measurement?
6. Distinguish between a firm's operating return on assets and its operating profit margin.