why do analysts calculate financial ratios ratios


Why do analysts calculate financial ratios?

Ratios are comparative measures.  For the reason that the ratios show relative value, they permit financial analysts to compare information that couldn't be compared in its raw form.  For instance, ratios perhaps used to compare one ratio to a related ratio, a firm's performance toward management's goals, a firm's present and past performance, or a firm's performance to alike firms

 

 

Request for Solution File

Ask an Expert for Answer!!
Financial Management: why do analysts calculate financial ratios ratios
Reference No:- TGS0305986

Expected delivery within 24 Hours