Why are ratios useful


Assignment:

Question 1. Why are ratios useful? What three groups use ratios, and for what reasons?

Question 2. What qualitative factors should analysts look for when evaluating a company's likely future financial performance? Explain.

Question 3. You are training a new financial analyst who lacks experience. What are the most critical steps of financial analysis? Why are these steps critical and what will you hope to find?

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